FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 FINANCIAL STATEMENTS 275 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 36 SHARE CAPITAL (CONTINUED) The special share held by the Minister of Finance (Incorporated) has the following characteristics: (continued) (c) The Special Shareholder or any person acting on behalf of the Special Shareholder shall be entitled to receive notice of and to attend and speak at all general meetings or any other meeting of any class or shareholders of the Company, but the Special Share shall carry no right to vote nor any other rights at any such meeting. (d) The Special Shareholder may, subject to the provisions of the Acts, require the Company to redeem the Special Share at par at any time by serving written notice upon the Company and delivering the relevant share certificate. (e) In a distribution of capital in a winding up of the Company, the Special Shareholder shall be entitled to repayment of the capital paid up on the Special Share in priority to any repayment of capital to any other Member. The Special Share shall confer no other right to participate in the capital or profits of the Company. 37 SHARE PREMIUM Group and Company 2017 RM'000 2016 RM'000 At 1 January 3,371,685 3,371,685 Transition to no-par value regime on 31 January 2017 under the 2016 Act (Note 36) (3,371,685) - At 31 December - 3,371,685 Share premium was recognised in conjunction with the listing of the Company’s shares on Main Market of Bursa Malaysia Securities Berhad. Share premium was not available for distribution as cash dividends. Prior to 31 January 2017, the application of the share premium account was governed by Sections 60 and 61 of the Companies Act, 1965. In accordance with the transitional provisions set out in Section 618(2) of the 2016 Act, on 31 January 2017 any amount standing to the credit of the Company’s share premium account has become part of the Company’s share capital (Note 36). 38 TREASURY SHARES During the financial year, the Company purchased 5,261,100 (2016: 859,800) of its issued ordinary shares listed on the Main Market of Bursa Malaysia Securities Berhad from the open market at an average price of approximately RM1.62 per share (2016: RM1.73 per share). The total consideration paid was RM8,588,000 (2016: RM1,488,000) including transaction costs of RM30,348 (2016: RM1,690). The purchase transactions were financed by internally generated funds. The shares purchased are retained as treasury shares. None of the treasury shares held were resold or cancelled during the financial year. In the current financial year, 5,289,500 (2016: Nil) of its treasury shares of RM8,592,000 (2016: Nil) vested to the employees and employees of the subsidiaries within the Group as part of equity settled share based compensation plan (Note 41). 39 FOREIGN EXCHANGE RESERVE The foreign exchange reserve is used to record exchange difference arising from the translation of the financial statements of foreign operations whose functional currencies are different from that of the Group’s presentation currency. It also represents the share of foreign exchange differences in the cumulative net investment of foreign associates and joint ventures.