Malaysia legislation
Section 116
Section 116
(a)
on the application of the Commissioner, it appears to the High Court that a person has contravened any of the provisions of this Act, or has contravened the conditions or restrictions of a registration under this Act, the rules of the exchange company or clearing house or is about to do an act with respect to trading in commodity futures contracts that, if done, would be such as to constitute an offence or contravention; or the effect that the client of s of the cor-client of any he firm, change.
s not prohibit which provides of the funds or on definite
"commodity act or agree a commodity odity trading a company ling company ties Act 1965.
no knowingly of subsection conviction to a ntract entered hall, notwith-idable at the imissioner, it a person has s of this Act, ns or restric-Act, the rules ring house or to trading in at, if done, in offence or
(b)
on the application of the exchange company or clearing house, it appears to the High Court that a person has contravened the rules or regulations of the exchange company or clearing house, as the case may be, the Court may without prejudice to any order it would be entitled to make otherwise than pursuant to this section, make one or more of the following orders:
(i)
in the case of persistent or continuing breaches of this Act, or the conditions or restrictions of a registration under this Act, or of the rules of the exchange company or clearing house, an order restraining a person from carrying on a business of trading in commodity futures contracts, from acting as a dealer's representative, commodity trading adviser or commodity trading adviser's representative, or from holding himself out as so carrying on business or so acting;
(ii)
an order restraining a person from acquiring, disposing of or otherwise trading in commodity futures contracts that is specified in the order;
(iii)
an order restraining a person from disposing, transferring, or taking out or sending out of Malaysia, any property;
(iv)
an order appointing a receiver of property of a dealer or of property that is held by a dealer for or on behalf of another person, whether as trustee or otherwise;
(v)
an order declaring a futures contract to be void or voidable;
(vi)
an order requiring a person referred to in subparagraphs (i), (ii), (iii) and (iv) to deliver up to the Court, his passport or such other documents as the Court thinks fit or an order prohibiting that person from leaving Malaysia without the consent of the Court;
(vii)
for the purpose of securing compliance with any other order under this section, an order directing a person to do or refrain from doing a specified act;
(viii)
any ancillary order deemed to be desirable in consequence of the making of an order under any of the preceding provisions of this subsection.
(2)
Where an application is made to the High Court for an order under subsection (1), the Court may, if in the opinion of the Court it is desirable to do so, before considering the application, grant an interim order, being an order of the kind applied for that is expressed to have effect pending the determination of the application.
(3)
Where the Commission makes an application to the Court for the making of an order under subsection (1), the Court shall not require the Commission, the exchange company or the clearing house as a condition of granting an interim order under subsection (2), to give any undertaking as to damages.
(4)
The Court may not make an order under subsection (1) if it is satisfied that the order would unfairly prejudice a person.
(5)
The Court may, before making an order under subsection (1), direct that notice of the application be given to such person as it thinks fit.
(6)
A person appointed by order of the Court under subsection (1) as a receiver of property of a dealer—
(a)
may require the dealer to deliver to him any property of which he has been appointed receiver or to give to him all information concerning that property that may reasonably be required;
(b)
may acquire and take possession of any property of which he has been appointed receiver;
(c)
may deal with any property that he has acquired or of which he has taken possession in any manner in which the dealer might lawfully have dealt with the property; and
(d)
shall have such other powers in respect of the property as the Court specifies in the order.
be desirable in an order under ons of this sub-the High Court Court may, if in to do so, before interim order, that is expressed ination of the n application to under subsection commission, the as a condition bsection (2), to der under subwould unfairly in order under application be the Court under of a dealer er to him any seen appointed ll information may reasonably ssion of any en appointed that he has keen possession ler might lawty; and respect of the the order.
(7)
For the purposes of subparagraphs (iii) and (iv) of subsection (1), and subsection (6), "property", in relation to a dealer, includes money or other property entrusted to or received on behalf of any other person by the dealer or another person in the course of or in connection with a business of trading in commodity futures contracts carried on by the dealer.
(8)
Any person who, without reasonable excuse, contravenes or fails to comply with—
(a)
an order under this section that is applicable to the person; or
(b)
a requirement of a receiver appointed by order of the Court under subsection (1), commits an offence and is liable on conviction to a fine of twenty-five thousand ringgit or to imprisonment for a term not exceeding two years or to both.
(9)
The Court may rescind, vary or discharge an order made by it under this section or suspend the operation of such an order.