Section 5

is a company which carries on a business of dealing in securities and is recognised as a member company under the relevant rules of the Exchange shall be recognised as a participating organization by the transferee company and shall be subject to the rules of the transferee company, after the conversion date; or

is in the employment of, or acting for or by arrangement with, the member company referred to in paragraph (a)

and performs for that member company any of its business of dealing in securities and is recognised or registered by the Exchange as such, shall be recognised or registered to act in such capacity by the transferee company, and shall be subject to the rules of the transferee company, after the conversion date.

Other effects of conversion 7.

It is hereby declared that the conversion of the Exchange under this Part—

shall not create a new legal entity or prejudice or affect its identity or continuity;

shall not render defective or affect any legal, disciplinary or other proceedings that could have been continued or commenced by or against it prior to the conversion, notwithstanding any change in its name or status in

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Demutualisation (Kuala Lumpur Stock Exchange)

consequence of its conversion;

shall not affect any instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision, or other document howsoever called, made, given or done by the Exchange prior to its conversion, under, in accordance with or by virtue of the provisions in the securities laws, the rules or any applicable written law, and such instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision, or other document, shall remain valid, binding and have effect in relation to the persons to whom such instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision, or other document, applies until it is amended, repealed or until it expires;

shall not affect any instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision, or other document howsoever called, made, given or done by the Commission to or against the Exchange prior to its conversion, under, in accordance with or by virtue of the provisions in the securities laws, the rules or any applicable written law, and such instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision, or other document, shall remain valid, binding and have effect in relation to the persons to whom such instruction, order, approval, notification, direction, act, requirement, condition, consent, guideline, circular, undertaking, declaration, indemnity, waiver, exemption, restriction or decision, or other document, applies until it is amended, repealed or until it expires;

shall not affect any right, privilege, obligation or liability acquired or accrued under the provisions of the securities laws, the rules or any applicable written law prior to the conversion date and shall not affect any legal, disciplinary

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or other proceedings, remedy, investigation or inquiry in relation to such right, privilege, obligation or liability, and any such legal, disciplinary or other proceedings, remedy, investigation or inquiry may be instituted, continued or enforced after its conversion; and

shall not affect any action that has been or may be taken by the Exchange for any breach of its rules before its conversion.