The 272nd Shariah Advisory Council of Securities Commission Malaysia Meeting (14 September 2023)

Issuance of Shariah-Compliant Preference Shares via Bonus Issue by a Listed Company

The Shariah Advisory Council of the Securities Commission Malaysia (SAC) had, in its 272nd ‎meeting held on 14 September 2023 resolved on the permissibility of the following issues in relation ‎to the issuance of Shariah-compliant preference shares via bonus issue:‎

‎(1)‎ Retained earnings as a musharakah capital contribution by the preference ‎shareholders in the existing musharakah; and‎

(2) Application of principle of ibra’ to reflect the waiver of rights for preferential ‎dividends (which was declared but is unpaid or cannot be paid) in Shariah-compliant ‎preference shares.

This document belongs to Securities Commission Malaysia (SC). Full access to the original source is available here: https://www.sc.com.my/development/icm