Can a PN17 Company Declare Dividends?
Technically, yes, a PN17 company can declare dividends, but:

It must comply with the Companies Act 2016, which requires that dividends can only be paid out of profits (retained earnings), and the company must remain solvent after the dividend.

Bursa Malaysia may scrutinize or raise concerns about such a move, especially if it might impair the company's restructuring efforts or financial recovery.

Approval from shareholders may be required depending on the company’s constitution and the nature of the dividend.

Regulators and stakeholders (e.g. creditors) may object if the dividend is seen as undermining the financial rehabilitation process.

Practical Reality
In practice, most PN17 companies do not declare dividends because they are:

In financial distress.

Focused on restructuring or regularization plans.

Under pressure to conserve cash.

OTHERS
SAPURA ENERGY BERHAD UNQUALIFIED OPINION WITH MATERIAL UNCERTAINTY RELATED TO
GOING CONCERN IN RESPECT OF THE AUDITED FINANCIAL STATEMENTS OF SAPURA ENERGY
BERHAD FOR THE FINANCIAL YEAR ENDED 31 JANUARY 2025
You are advised to read the entire contents of the announcement or attachment.
To read the entire contents of the announcement or attachment, please access
the Bursa website at http://www.bursamalaysia.com