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. (10 marks)

CA 2016 Malaysia

Using ILAC method