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Section 54A

Investment in immovable properties

of Co-Operative Societies Act 1993

ActIn forceProvision 65 of 119
Section 54A
(1)

Unless otherwise provided in the regulations and subsection

(2)

, no co-operative society shall acquire, hold or invest in any immovable property.

(2)

Subsection (1) shall not apply to a co-operative society where—

(a)

holding of an immovable property is for the satisfaction of a debt of a member to the co-operative society;

(b)

its business involves the acquisition, investment in or sale of immovable property;

(c)

the acquiring, holding or investing of an immovable property is necessary for the purpose of conducting its business; or

(d)

it provides housing or other amenities for its employees which are set out in their schemes of service.

(3)

Any co-operative society or officer of the co-operative society who fails to comply with subsection (1) commits an offence and shall, on conviction—

(a)

in the case of a co-operative society, be liable to a fine not exceeding one million ringgit; or

(b)

in the case of an officer of the co-operative society, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both.