Section 15. Amendment of section 365. (Companies (Amendment) (No. 2) Act 1998

Act A1043
Companies (Amendment) (No. 2) Act 1998

Section 15. Amendment of section 365.

Section 365 of the principal Act is amended -

(

) by inserting after subsection (1) the following subsections:

"(1A) A company is allowed to declare dividends (after making deductions for income tax, if any for a financial year only up to an amount -

(

) not exceeding the after-tax profit of that financial year; or

(

) not exceeding the average dividends declared in respect of the two financial years immediately preceding that financial year,

whichever is the greater.

(1B) Any after-tax profit not declared as dividends for any financial year commencing on or after 1 July 1997 may be accumulated and paid out as dividends in any financial year subsequent to that financial year.

(1C) Subsections (1A) and (1B) shall not apply to -

(

) subsidiaries of any holding company;

(

) private companies which are wholly-owned by Malaysians; and

(

) a company whose financial year commenced before 1 July 1997.

(1D) The Minister of Finance may exempt any company from the provisions of subsection (1A)."; and

(

) in subsection (2) by inserting after the words "not profits" the words "or are profits not permitted or exempted under subsection (1A), (1B), (1C) or (1D)".