Section 131 of The Companies Act 2016
A company may only make a distribution to the shareholders out of profits of the Company available if the Company is solvent.
Section 131(2) stated that the company, every officer and any other person or individual who contravene this section commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding 5 years or to a fine not exceeding RM3,000,000 or to both.