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The Redeemable Preference Share Agreement is a crucial document in Malaysian corporate finance, typically used when companies seek to raise capital without immediately diluting existing shareholders' voting rights or when implementing structured finance solutions. This agreement is particularly relevant under Malaysian law, where the Companies Act 2016 provides specific provisions for preference shares. The document details the preferential rights to dividends, capital returns, and redemption terms, making it suitable for both private and public companies. It's commonly used in corporate restructuring, project financing, or when companies need to attract strategic investors while maintaining flexibility to later redeem the shares. The agreement must comply with Malaysian securities regulations and corporate law requirements, particularly regarding share capital maintenance and shareholder protection.

1. Parties: Identifies the issuing company and the preference shareholder(s)

2. Background: Sets out the context of the share issuance and the company's authority to issue the preference shares

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement

4. Subscription and Issue: Details of the preference shares being issued, including number, price, and payment terms

5. Rights and Privileges: Specifies the preferential rights, including dividend rights, voting rights, and capital rights

6. Redemption Terms: Details the circumstances, timing, and procedure for redemption of the preference shares

7. Dividend Provisions: Specifies dividend rates, payment dates, and calculation methods

8. Restrictions and Obligations: Sets out restrictions on the company and ongoing obligations to preference shareholders

9. Events of Default: Defines circumstances constituting default and consequences thereof

10. Representations and Warranties: Standard warranties from the company regarding its capacity and authority

11. Notices: Procedures for giving notices under the agreement

12. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and amendments