Malaysia legislation
Section 27
Section 27
Where a notice of rescission is given pursuant to section 26—
(a)
the contract to which it relates shall be deemed to have been rescinded by mutual consent and never to have had effect; and
(b)
any contract of guarantee relating to the contract shall be deemed never to have had effect.
Part Va
PROHIBITION OF PYRAMID SCHEME
Interpretation in relation to this Part 27a. In this Part, unless the context otherwise requires—
“promote”, in relation to pyramid scheme prohibited by this
Act, means—
(a)
to contrive, prepare, establish, plan, advertise, operate or conduct by using any medium, including electronic transaction; or
Direct Sales and Anti-Pyramid Scheme 25
(b)
to induce or attempt to induce other persons to be a participant in such scheme by using any medium, including electronic transaction;
“person” means an individual, body corporate, partnership or society;
“participant” means a person who participates or gets benefits in a pyramid scheme;
“pyramid scheme” means any scheme, arrangement, plan, operation or chain process having all or any of the features specified in the Schedule.
Unlawful to promote or conduct pyramid scheme 27b. (1) No person shall promote or cause to be promoted a pyramid scheme.
(2)
Any person who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable—
(a)
where such person is a body corporate, partnership or society, to a fine of not less than one million ringgit and not more than ten million ringgit and, for a second or subsequent offence, to a fine of not less than ten million ringgit and not more than fifty million ringgit;
(b)
where such person is not a body corporate, partnership or society, to a fine of not less than five hundred thousand ringgit and not more than five million ringgit or to imprisonment for a term not exceeding five years or to both and, for a second or subsequent offence, to a fine of not less than one million ringgit and not more than ten million ringgit or to imprisonment for a term not exceeding ten years or to both.
(3)
Where a person, being a director, manager, secretary or other similar officer of a body corporate, a partner in a partnership or an office-bearer in a society, as the case may be, is guilty of an offence under this section by virtue of section 38, he shall be liable to the penalty provided for under paragraph (2)(b).
26
Act 500