Section 69
Action by the Commission in respect of co-operative society in certain circumstances
of Co-Operative Societies Act 1993
The Commission after exercising its powers under section 64
or 66, as the case may be, and where the Commission is satisfied that a co-operative society—
(a)
is carrying on its business in a manner detrimental to the interests of the co-operative society, its members, its depositors, the co-operative society sector or the public generally;
(b)
is insolvent, or has become or is likely to become unable to meet all or any of its obligations, or is about to suspend payment to any creditors; or
(c)
has contravened any provision of this Act or the Malaysia
Co-operative Societies Commission Act 2007, or any condition of its registration under section 7 or any written law, regardless that there has been no criminal prosecution in respect thereof,
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the Commission may, by order in writing, exercise any one or more of the following powers, as the Commission deems necessary:
(i)
require the co-operative society to take any steps, or any action, or to do or refrain from doing any act or matters, in relation to the co-operative society, or its business or activities, or its officers;
(ii)
prohibit a co-operative society from extending any further Islamic financing or credit facility for such period as may be set out in the order, and make the prohibition subject to any conditions as the
Commission may impose, and by further order similarly made, extend the aforesaid period;
(iii)
remove any officer of the co-operative society if it is in the interest of the co-operative society for the
Commission so to do, but no person shall be so removed without giving him an opportunity to be heard and any vacancy created by such removal shall be filled in the manner provided in the by-laws of the co-operative society;
(iv)
notwithstanding section 42—
(A)
suspend or remove from office any member of the Board of the co-operative society; or
(B)
appoint any person or persons as a member of the Board of the co-operative society, and provide such person or persons to be paid by the co-operative society any remuneration; or
(C)
dissolve the Board of the co-operative society;
(v)
appoint a person to advise the co-operative society in relation to the proper conduct of its business or activities, and provide in the order for such person to be paid by the co-operative society any remuneration; or
Co-operative Societies 65
(vi)
freeze the accounts of the co-operative society held in other co-operative society or banks to prevent losses or misuse of its funds.
(2)
Where any of the circumstances set out in paragraph (1)(a), (b), or (c) exists in respect of a co-operative society, the Commission may, whether or not it had exercised any of its powers under subparagraphs
(1)
, (ii), (iii), (iv), (v) or (vi) by order published in the Gazette—
(a)
for the Commission or any person appointed by the
Commission to assume control—
(i)
of the whole of the property, business, activities and affairs of the co-operative society, and carry on the whole of its business, activities and affairs; or
(ii)
any part of the property, business, activities and affairs of the co-operative society, and carry on such part of its business, activities and affairs; and
(b)
for the costs and expenses of the Commission, or the remuneration of the person appointed under subsection (1), to be payable out of the funds and properties of the co-operative society as a first charge; or
(c)
to order the dissolution of the co-operative society.
(3)
An order of the Commission under subsection (1) or (2) may, from time to time, be modified, amended, varied or replaced either prospectively, or where it is practicable or unjust to do so, retrospectively, by a further order under subsection (1) or (2), as the case may be.
(4)
Any person aggrieved by the order of the Commission made under subparagraph (1)(i), (ii), (iii), (iv), (v) or (vi) may, within twenty-one days of the making of such order, appeal to Minister, who shall confirm or set aside such order and the decision of the Minister shall be final and conclusive.
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(5)
Any co-operative society or officer of the co-operative society who fails to comply with subparagraph (1)(i) or (ii) commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both.
(6)
For the purposes of this section and section 69C “appointed person” means person appointed by the Commission, to act on its behalf, to assume control under paragraph (2)(a).