KENANGA ANNUAL REPORT 2017

53. SIGNIFICANT EVENTS AND SUBSEQUENT EVENTS The following are the significant events of the Group during the financial year ended 31 December 2017: (1) Acquisition of the remaining 27% equity interests in Kenanga Futures Sdn. Bhd. (formerly known as Kenanga Deutsche Futures Sdn Bhd) (“KF”) On 27 July 2017, the Bank acquired the remaining 1,350,000 ordinary shares of issued shares of KF, representing 27% equity interests for a cash consideration of RM10.05 million from Deutsche Asia Pacific Holdings Pte Ltd. Subsequent to the said acquisition, KF became a wholly-owned subsidiary of the Bank. Financial position of KF as at the date of acquisition: RM’000 Carrying value of net assets 37,830 Carrying value of the additional interests acquired 10,214 The difference between the consideration and the carrying value of the interest acquired has been recognised within retained profits: RM’000 DR/(CR) Consideration paid for the acquisition of NCI 10,050 Decrease in equity attributable to NCI (10,214) Increase in equity attributable to equity holders of the Group (164) (2) The Companies Act 2016 (“New Act”) New Act was enacted to replace the Companies Act 1965 in Malaysia with the objectives of creating a legal and regulatory structure that will facilitate business and promote accountability as well as protection of corporate directors and shareholders, taking into consideration the interest of other stakeholders. The New Act was passed on 4 April 2016 by the Dewan Rakyat (House of Representative) and gazetted on 15 September 2016. On 26 January 2017, the Minister of Domestic Trade, Co-operatives and Consumerism announced that the date on which the New Act comes into operation, except section 241 and Division 8 of Part III of the New Act, would be 31 January 2017. The key changes introduced in the New Act which have affected the financial statements of the Group and of the Bank are: (a) Removal of the authorised share capital; (b) Shares of the Bank ceased to have par or nominal value; and (c) Share premium of the Bank became part of the share capital. Kenanga Investment Bank Berhad 31 December 2017 222 notes to the financial statements