68. Issue of shares for no consideration

Question 1

68. Issue of shares for no consideration

Answer 1

General overview
[68.01] For the first time, Act No 36 of 2014 allows for shares to be issued with no consideration. This legal provision makes it a little dicey for accountants. For an example of a “not-for-profit” company which established and managed a hospital that issued shares gratis to the CEO/president of the hospital, see Adventist Health Services (M) Sdn Bhd & Ors v Teddric Jon Mohr [2014] 11 MLJ 771, HC.

68.02] These shares are probably issued to the founder of the company.

Question 2

Issue of shares for no consideration

Answer 2

[68.02] These shares are probably issued to the founder of the company.