12.6
B Bhd, a listed corporation has an issued and paid-up capital of RM120 million comprising 120 million ordinary shares of RM1.00 each. For year 2009, B Bhd procured its shareholder approval to undertake share buy-back of up to 10% of its issued and paid-up capital. Pursuant to its authorisation in year 2009, B Bhd had purchased 3 million of its own shares in February 2009 and retained the shares purchased as treasury shares. Subsequently in August 2009, the issued and paid-up capital of B Bhd is reduced to RM100 million upon completion of its corporate exercise. What is the remaining number of its own shares that B Bhd may purchase in year 2009?
The maximum limit that a listed corporation may purchase its own shares or hold any of its own shares as treasury shares under paragraph 12.09 of the Main LR will be based on the adjusted issued and paid-up capital of the listed corporation pursuant to a corporate exercise. Hence, in this case, the maximum limit of its own shares that B Bhd may purchase in year 2009 is 10 million based on its adjusted issued and paid-up capital in August 2009 and in view of the 3 million shares purchased in February 2009, B Bhd may purchase an additional 7 million of its own shares for the remaining period in year 2009.