KUALA LUMPUR (Aug 1): Apex Equity Holdings Bhd said it is seeking a validation order from the High Court, to regularise its previous share buy-back exercises.

In an exchange filing today, Apex Equity said the court application was filed because the share buyback exercises between the years 2005 and 2017 were “questionable”.

“The validity of such share buy-back exercises is questionable because the company’s Memorandum and Articles of Association does not provide the company with the requisite authority to undertake share buy-back exercises,” read the filing.

It said the requirement for express authority to be provided in the constitutional document for a company to undertake share buy-back exercises is stipulated in Section 67A(1) of the Companies Act 1965 and Section 127(1) of the Companies Act 2016.

Apex Equity said it has filed a court application with the High Court of Malaya on Monday, July 30, pursuant to Section 582(3) of the Companies Act 2016.

It has subsequently extracted the sealed copy or the originating summons.

Besides seeking a relief or order pursuant to a declaration validating the share buyback transactions, the group is seeking, inter alia, declarations ascertaining the validity of these shares being held as treasury shares, as well as the validity of these shares being distributed to the company’s shareholders as share dividend.

Further development of the court application will be announced in due course, it added.

Shares in Apex Equity, which offers stock broking services, were not traded today. The stock was last done at 96 sen on July 31.