T Bhd. is a public listed company manufacturing rubber gloves. Due to the Covid-19 pandemic, share prices of T Bhd. has been steadily rising over the last year due to the increasing demand of its product. However, the share prices of T Bhd. recently dropped drastically following the outbreak of Covid-19 cases amongst its factory workers.

During the Board of Directors' meeting, various measures to counter the share price from further dropping were discussed, including plans for a share buy-back and payment of dividend.

(a) Explain whether the plan for a share buy-back is possible for T Bhd. Your answer should be supported by the relevant law concerning share buy-back. 

(b) Discuss whether T Bhd. could declare a dividend payment by referring to the law under the Companies Act 2016. 

Answer rating: 100% (QA)

a Regarding the plan for a share buyback for T Bhd the Companies Act 2016 of Malaysia does allow for share buybacks subject to certain conditions and ... View the full answer