Document background
The Preference Shares Agreement is a vital instrument in Malaysian corporate finance, used when companies seek to raise capital without diluting existing shareholders' control. This document, governed by Malaysian law and compliant with the Companies Act 2016, establishes the framework for issuing preference shares with specific rights and privileges. It details crucial elements such as dividend rights, voting rights, redemption terms, and capital distribution preferences. The agreement is particularly relevant in scenarios where companies need to attract investors while maintaining operational control, or when investors seek assured returns and priority in capital distribution. The document must align with Malaysian securities regulations and corporate governance requirements, making it essential for both private and public companies engaging in sophisticated capital raising exercises.
