*TELECOMMUNICATION SERVICES (SUCCESSOR COMPANY) ACT 1985

In this section, ―excepted lands‖ means lands situated outside the area of any Federal Territory established by law and which—

In this section, ―designated property‖ means property of any description, whether movable or immovable, which the Minister may, by order published in the Gazette, declare as necessary to be retained by the Government of Malaysia for the exercise of the duties and performance of the functions of the Director General of the

Telecommunication

Department,

Malaysia under the

Telecommunications Act 1950 [Act 20].*

For the avoidance of doubt —

Every chose-in-action transferred by subsection (1) to the successor company may, after the transfer date, be sued on, recovered or enforced by the company in its own name and it shall not benecessary for the company or the Government of Malaysia to give notice to the person bound by the chose-in-action of the transfer effected by the subsection.

Every right and liability transferred by subsection (1) to the successor company may, on and after the transfer date, be sued on, recovered or enforced by or against the company in its own name and it shall not be necessary for the company or the Government of

Malaysia to give notice to the person whose right or liability is transferred by this section of such transfer.

In the case of rights and liabilities arising under any loans which vest in the company on the transfer date, the company may enter into such arrangements or agreements over such rights and liabilities with the Government of Malaysia or any third party.

Disposal of land

in the case of an interest in land in Peninsular Malaysia, a lease of such land for a period not exceeding ninety-nine years, or, in the case of land held under a State lease or a

Mukim lease, for a period not exceeding the residue of the term of such lease; and

in the case of an interest in land in Sabah or Sarawak, a sublease in accordance with the provisions of the Land

Ordinance of Sabah or the Land Code of Sarawak, as the case may be, to the successor company for the purpose of telecommunication services to be specified in the terms of the lease or sublease.

For the purpose of paragraph (1)(a), ―lease‖ shall have the meaning assigned thereto in the National Land Code and for the

Telecommunication Services (Successor Company) 9

purpose of paragraph (1)(b), ―sub-lease‖ shall have the meaning applicable thereto under the Land Ordinance of Sabah or the Land

Code of Sarawak, as the case may be.

Initial Government holding in the successor company

to the Corporation; or

to any person entitled to require the issue of the securities following their initial allotment to the Corporation.

The Minister of Finance shall not give a direction under subsection (1) at a time when the successor company has ceased to be wholly owned by the Government of Malaysia.

Securities required to be issued in pursuance of this section shall be issued or allotted at such time and on such terms, as to allotment, as the Minister of Finance may direct.

Shares issued in pursuance of this section—

The Minister of Finance may dispose of any securities issued or of any rights to securities initially allotted to the Corporation in pursuance of this section.

Any dividends or other sums received by the Corporation in right of or on the disposal of any securities or rights acquired by virtue of this section shall be paid into the Consolidated Fund.

Government investment in securities of the successor company

securities of the successor company or of any subsidiary of the successor company; or

rights to subscribe for any such securities.

The Minister of Finance may dispose of any securities or rights acquired under this section.

Any expenses incurred by the Minister of Finance in consequence of the provisions of this section shall be treated as investments and be authorized under subparagraph 8(3)(a)(iv) of the

Financial Procedure Act 1957 [Act 61].

Any dividends or other sums received by the Corporation in right of, or on the disposal of, any securities or rights acquired under this section shall be paid into the Consolidated Fund.

Stamp duty shall not be chargeable in respect of any increase in the capital of the successor company which—

securities of the successor company may be assigned under section 5 to any nominee of the Minister of Finance appointed for the purposes of that section or to any person entitled to require the issue of the securities following their initial allotment to any such nominee; and

any such nominee appointed for the purposes of section 6

may acquire securities or rights in accordance with that section.

Any person holding any securities or rights as a nominee of the Minister of Finance by virtue of subsection (1) shall hold and deal with them on such terms and in such manner as the Minister of

Finance may direct.

Financial structure of the successor company

The statutory reserve may only be applied by the successor company in paying up unissued shares of the company to be allotted to members of the company as fully paid bonus shares.

For the purposes of any statutory accounts of the successor company—

12 Laws of Malaysia ACT 322

For the purposes of any statutory accounts of the successor company, the amount to be included in respect of any item shall be determined as if anything done by the Telecommunication

Department, Malaysia, whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision of reserve, or otherwise had been done by the successor company.

Without prejudice to the generality of the provision of subsection (4) the amount to be included from time to time in any reserves of the successor company as representing its accumulated realized profits shall be determined as if any profits realized and retained by the Telecommunication Department, Malaysia, had been realized and retained by the successor company.

References in this section to the statutory accounts of the successor company are references to any accounts prepared by the successor company for the purposes of any provision of the

Companies Act 1965.

For the purposes of this section, "complete accounting year"

means an accounting year ending with 31 December.

Telecommunication Services (Successor Company) 13

Every such person who opts under subsection (1) to serve as an employee of the successor company shall be employed by such company on terms and conditions of service not less favourable than the terms and conditions of service to which he was entitled to immediately before the transfer date.

14

Act 322

LIST OF AMENDMENTS

Amending law

Short Title

In force from

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15

Act 322

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

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