Question

IU TURU Question 3 What are the differences between right is differences between right issues and bonus issues? Your answer should include the 10 Include the advantages and disadvantages of both right issues and bo issues. [8 marks] Question 4 The Companies Act 2016 repealed the Companies Act 1965 and changed the landscape of company law in Malaysia. The Companies Act 2016 reformed almost all aspects of company law in Malaysia. Required: By referring to the Companies Act 2016, insert the correct sections in column (A) for each description in column B.

Answer 1

classmate Solution to a No.- 3 pote Difference between Right Terue and Borus Igoue' - When a company offers additional shares to their existing share holders in exchange for money is called right issue. This is just like selling shares to existing shareholders at a de counted price to raise funds from the maket. Bonus Shares sefers to free shares issued to the existing shareholders of the company, in a poop proportion to the number of shares held by the share holder. The difference between sught issue and bonus are as follows:- sue | Right Issue | Basis of Difference Bonus Issue Definition Right shares are Bonus sharel are offered to the shares issued by existing shareholders the company to in a proportion to their existing their existing haldings shareholders for Rights can be bought free. It is issued at a discounted in the proposition price, within a of their existing Istipulated time period. holdings. Right issue can Bonus shares I be either fillly are always lor partily paid uph fully paid up. - Paid up Value

IM Date | Bonus Istine Right Isque / Basis of Difference (3) Minimum Minimum subscription Munimeen tube Subscription is required if you ption is not want to buy right required in this of Bonus issue Ishares (4) Cash Receipt Right Issue resulto Bonus ells we dane in cash receipt for not result in the company cash receipt. 6 share Price Right Issue does Bonus issue not affect the share being down the I price. shovce price laccording to the propostion Renunciation Shareholders may fully or partly renounce their rights share holder does not sennbroco Choir freights. o Price | Right shares offered Bonus shares at a discounted luesued for prices. cost. & Objective The objective of sight issues to raise fresh capital from the market. Bonus illue can be made an alternative to dividend payment