COMPANIES ACT 2016
“preference share” means a share by whatever name called, which does not entitle the holder to the right to vote on a resolution or to any right to participate beyond a specified amount in any distribution whether by way of dividend, or on redemption, in a winding up, or otherwise;

A preference share is a class of share that gives its holder priority over ordinary shareholders in receiving specified financial benefits, but generally restricts the holder's rights to vote and to participate in the company's profits or assets beyond an agreed amount.
Unlike an ordinary share, which usually carries full voting rights and unlimited participation in the company's profits and surplus assets, a preference share provides preferential financial rights in exchange for limited ownership rights.
The Companies Act 2016 adopts a substance-over-form approach by providing that a preference share is a share "by whatever name called." This means that the legal classification depends on the rights attached to the share, rather than the label or title given to it by the company. Purpose of the Definition
The definition of preference share serves several important purposes:

• Distinguishes preference shares from ordinary shares based on their legal rights.
• Provides certainty regarding the rights and limitations attached to different classes of shares.
• Enables companies to raise capital while offering investors varying levels of risk and return.
• Protects shareholders by requiring the rights attached to preference shares to be clearly defined.
• Facilitates flexible corporate financing and capital structuring.

Essential Characteristics of a Preference Share
Under the Companies Act 2016, a preference share generally possesses two essential characteristics.
1. Limited or No Voting Rights
A preference shareholder does not ordinarily have the right to vote on shareholders' resolutions.
Unlike ordinary shareholders, preference shareholders generally cannot participate in decisions concerning:

• appointment or removal of directors;
• approval of financial statements;
• amendments to the constitution;
• mergers or acquisitions; or
• other ordinary corporate matters.

However, voting rights may arise where:

• the Companies Act 2016 expressly grants such rights;
• the company's constitution provides otherwise; or
• the rights attached to the preference shares are proposed to be varied.

2. Limited Participation in Distributions
A preference shareholder is entitled only to the specified amount stated in the terms of issue.
The holder is not entitled to participate beyond that amount, even if the company earns substantially higher profits or has surplus assets upon liquidation.
This limitation applies to distributions:

• by way of dividends;
• upon redemption;
• during winding up; or
• under any other form of distribution.

Rights Commonly Attached to Preference Shares
Although the Companies Act 2016 defines the essential characteristics of a preference share, the precise rights are determined by the company's constitution and the terms of issue.
Typical rights include:
(a) Priority Dividend
Preference shareholders usually receive dividends before ordinary shareholders.
The dividend may be:

• fixed;
• variable;
• cumulative; or
• non-cumulative.

(b) Priority on Return of Capital
If the company is wound up, preference shareholders generally receive repayment of their capital before ordinary shareholders receive any distribution. (c) Redemption Rights
Certain preference shares are redeemable.
The company may redeem the shares according to the terms specified when they were issued and in compliance with the Companies Act 2016. (d) Limited Participation
After receiving their agreed entitlement, preference shareholders normally cannot share further in:

• additional dividends;
• surplus assets; or
• remaining profits,

unless the terms expressly provide otherwise (for example, in the case of participating preference shares). Types of Preference Shares
Companies may issue different categories of preference shares, including:
1. Cumulative Preference Shares
Unpaid dividends accumulate and remain payable in future years before dividends may be paid to ordinary shareholders. 2. Non-Cumulative Preference Shares
If dividends are not declared for a financial year, the shareholder loses the right to claim those unpaid dividends. 3. Redeemable Preference Shares
These shares may be redeemed by the company in accordance with the terms of issue and the Companies Act 2016. 4. Convertible Preference Shares
These shares may be converted into ordinary shares upon the occurrence of specified events or at the option of the holder or the company. 5. Participating Preference Shares
These shares receive their fixed preferential entitlement and may also participate in additional profits or surplus assets if expressly provided in the terms of issue.

Practical Examples
Example 1 – Fixed Dividend Preference Shares
ABC Berhad issues 100,000 preference shares carrying a fixed dividend of 6% per annum.
Each year, preference shareholders receive their 6% dividend before any dividends are declared for ordinary shareholders. Example 2 – Winding Up
XYZ Sdn. Bhd. is wound up.
After settling the company's liabilities, preference shareholders receive repayment of their capital before any remaining assets are distributed to ordinary shareholders. Example 3 – No Voting Rights
DEF Berhad convenes its annual general meeting to appoint directors.
Ordinary shareholders vote on the resolutions.
Preference shareholders do not vote because their shares do not carry ordinary voting rights under the terms of issue. Example 4 – Participating Preference Shares
GHI Berhad issues participating preference shares.
After receiving their fixed preferential dividend, the holders are also entitled to share in additional profits because the terms of issue expressly grant participation rights beyond the fixed entitlement. Compliance Requirements
When issuing preference shares, a company should ensure that:

• the rights attached to the preference shares are clearly specified in the constitution or the terms of issue;
• the issue complies with the Companies Act 2016 and the company's constitution;
• shareholders are informed of the voting, dividend, redemption, and distribution rights attached to the shares;
• any redemption is carried out in accordance with statutory requirements and the terms of issue; and
• any variation of class rights is approved in accordance with the Companies Act 2016 and the company's constitution.

Importance
The definition of preference share is fundamental to Malaysia's corporate financing framework because it distinguishes a class of shares that combines priority economic rights with limited governance rights. By defining preference shares according to the rights attached to them—rather than the name used by the company—the Companies Act 2016 ensures legal certainty and prevents companies from circumventing statutory protections through creative terminology. Preference shares provide companies with a flexible means of raising capital while allowing investors to choose an investment profile that emphasises stable returns and priority in distributions over management participation. The statutory definition also safeguards shareholders by clearly identifying the limits on voting rights and participation in dividends, redemption proceeds, and distributions upon winding up.  
 

《2016 年公司法》

“优先股”（Preference Share） 是指无论以任何名称称呼的股份（By Whatever Name Called），其持有人：

• 无权就股东决议（Resolution）进行表决；或
• 无权于股息分派、股份赎回、公司清盘或其他任何分派中，参与超过指定金额（Specified Amount）的利益分配。

实务说明（Practical Explanation）

根据《2016 年公司法》，优先股（Preference Share） 是一种赋予股东优先经济权益（Priority Economic Rights），但一般限制其**表决权（Voting Rights）及参与公司利润或剩余资产分配权（Participation Rights）**的股份类别。

与普通股（Ordinary Share）不同，普通股股东通常拥有：

• 完整的股东表决权；
• 无限分享公司盈利；
• 无限参与公司剩余资产分配；以及
• 参与公司管理的重要权利。

相反，优先股股东主要享有的是优先取得约定财务利益，例如优先领取股息或优先收回投资资本，但通常须放弃部分管理及控制公司的权利。

《2016 年公司法》采用**“重实质、轻形式”（Substance over Form）原则，将优先股定义为“无论以任何名称称呼的股份”**。

因此，一项股份是否属于优先股，并不取决于公司给予该股份的名称，而是取决于其所附带的实际权利及限制。

即使公司将某类股份命名为：

• 特别股（Special Share）；
• A 类股份（Class A Share）；
• 投资股（Investment Share）；
• 收益股（Income Share）；

只要其法律权利符合《2016 年公司法》对优先股的定义，该股份仍属于优先股。

优先股定义的目的（Purpose of the Definition）

《2016 年公司法》设立优先股定义，主要具有以下目的：

• 区分优先股与普通股的法律性质；
• 明确不同类别股份所附带的权利及限制；
• 让公司能够透过不同类别股份灵活筹集资金；
• 保障投资者了解优先股所享有及受限制的权利；以及
• 提供企业资本结构（Capital Structure）的灵活性及融资选择。

优先股的基本特征（Essential Characteristics of a Preference Share）

根据《2016 年公司法》，优先股通常具有以下两项核心特征：

（一）有限或没有表决权（Limited or No Voting Rights）

优先股股东一般无权参与股东决议的投票。

与普通股股东不同，优先股股东通常不能参与决定：

• 委任或罢免董事；
• 批准财务报表；
• 修改公司章程（Constitution）；
• 合并或收购交易；
• 公司一般经营事务；以及
• 其他普通股东决议事项。

然而，在下列情况下，优先股股东仍可能享有表决权：

• 《2016 年公司法》明确赋予有关权利；
• 公司章程另有规定；或
• 建议更改（Variation）优先股所附带的类别权利（Class Rights）。

（二）参与分派的权利受限制（Limited Participation in Distributions）

优先股股东通常只能取得发行条款所载明的固定权益。

即使公司盈利远高于预期，或清盘时拥有大量剩余资产，优先股股东一般亦无权分享超出约定金额的利益。

此限制适用于：

• 股息分派（Dividends）；
• 股份赎回（Redemption）；
• 公司清盘（Winding Up）；以及
• 其他任何形式的财产分派。

优先股通常享有的权利（Rights Commonly Attached to Preference Shares）

虽然《2016 年公司法》规定了优先股的基本特征，但具体权利仍须依据**公司章程（Constitution）及发行条款（Terms of Issue）**决定。

常见权利包括：

（一）优先领取股息（Priority Dividend）

优先股股东通常可优先于普通股股东领取股息。

股息可分为：

• 固定股息（Fixed Dividend）；
• 浮动股息（Variable Dividend）；
• 累积股息（Cumulative Dividend）；或
• 非累积股息（Non-cumulative Dividend）。

（二）优先返还资本（Priority on Return of Capital）

公司清盘时，在偿还债务后，优先股股东一般可优先于普通股股东收回其投资资本。

（三）赎回权（Redemption Rights）

部分优先股属于可赎回优先股（Redeemable Preference Shares）。

公司可依据发行条款，并按照《2016 年公司法》的规定赎回有关股份。

（四）有限参与权（Limited Participation）

优先股股东于取得其约定权益后，一般不得进一步分享：

• 额外股息；
• 剩余资产；或
• 公司盈余。

惟若发行条款另有明确规定（例如参与式优先股），则不受此限制。

优先股的常见类别（Types of Preference Shares）

公司可发行不同类别的优先股，包括：

1. 累积优先股（Cumulative Preference Shares）

若某财政年度未派发股息，未支付股息将累积至以后年度，并须优先支付后，方可向普通股股东派发股息。

2. 非累积优先股（Non-Cumulative Preference Shares）

若某财政年度没有宣布派发股息，股东无权于日后追讨该年度未支付的股息。

3. 可赎回优先股（Redeemable Preference Shares）

公司可依据发行条款及《2016 年公司法》规定赎回有关股份。

4. 可转换优先股（Convertible Preference Shares）

优先股可于指定事件发生时，或依据持有人或公司的选择，转换为普通股。

5. 参与式优先股（Participating Preference Shares）

除享有固定优先权益外，若发行条款另有规定，股东亦可参与分享额外利润或剩余资产。

实务示例（Practical Examples）

例子一：固定股息优先股（Fixed Dividend Preference Shares）

ABC Berhad 发行 100,000 股优先股，每年享有 6% 固定股息。

每个财政年度，优先股股东均可优先领取 6% 股息，其后公司方可向普通股股东派发股息。

例子二：公司清盘（Winding Up）

XYZ Sdn. Bhd. 进入清盘程序。

于清偿公司所有债务后，优先股股东可优先于普通股股东收回投资资本。

例子三：没有表决权（No Voting Rights）

DEF Berhad 召开年度股东大会，议决委任董事。

普通股股东可参与投票。

由于优先股发行条款并未赋予一般表决权，因此优先股股东无权参与有关决议。

例子四：参与式优先股（Participating Preference Shares）

GHI Berhad 发行参与式优先股。

优先股股东除先领取固定优先股息外，根据发行条款，亦可进一步分享公司额外利润。

合规要求（Compliance Requirements）

公司发行优先股时，应确保：

• 优先股所附带的权利清楚载明于公司章程或发行条款；
• 发行程序符合《2016 年公司法》及公司章程；
• 股东充分知悉有关股份的表决权、股息权、赎回权及分派权；
• 股份赎回程序符合《2016 年公司法》及发行条款规定；以及
• 任何类别权利（Class Rights）的修改，均须依照《2016 年公司法》及公司章程规定获得批准。

重要性（Importance）

“优先股（Preference Share）” 是马来西亚企业融资制度中极为重要的股份类别，其结合了优先经济利益与有限公司治理权利两项特点，为企业提供灵活的资本筹集方式，同时满足不同投资者的风险及回报需求。

《2016 年公司法》并非依据股份名称，而是依据股份实际附带的权利来界定优先股，从而贯彻**重实质、轻形式（Substance over Form）**原则，防止公司仅透过更改股份名称规避法律规定，确保各类股份的法律性质具有明确性及一致性。

优先股制度的重要意义包括：

• 为公司提供更灵活的融资及资本结构安排；
• 让投资者可选择偏重稳定收益及资本保障的投资模式；
• 明确区分优先股与普通股的法律权利及责任；
• 保障投资者充分了解其表决权、股息权、赎回权及清盘分派权的限制；
• 平衡公司融资需求与投资者权益；以及
• 促进企业融资市场的发展，强化公司治理及提升资本市场的透明度与法律确定性。