Co-Operative Societies Act 1993 · Updated to 1 Apr 2015 · Part VIII · Inspection, Inquiry, Dissolution and Disputes
75. Liquidator’s powers
Feedback & supportA liquidator appointed under section 74 shall, subject to the guidance and control of the Commission and to any limitations imposed by the Commission by order under section 76, have power to—
Commission
“Commission” means the Malaysia Co-operative Societies Commission established under the Malaysia Co-operative Societies Commission Act 2007;
72 Laws of Malaysia ACT 502
determine from time to time the contributions to be made by members and past members or by the estates of deceased members of the co-operative society to its assets;
appoint a day by notice before which creditors whose claims are not already recorded in the books of the co-operative society shall state their claims for admission or be excluded from any distribution made before they have proved them;
decide any question of priority which arises between claimants and draw up a scheme for the payment of their dues;
institute and defend suits and other legal proceedings by and on behalf of the co-operative society by his name or office and to appear in court as a litigant in person on behalf of the co-operative society;
empower any person to make collections and to grant valid receipts on his behalf;
decide by what persons and in what proportions the costs of liquidation are to be borne;
give such directions in regard to the collection and distribution of the assets of the co-operative society and the disposal of the books and documents of the co-operative society as may be necessary in the course of winding up the co-operative society;
compromise any claim by or against the co-operative society provided the sanction of the Commission has first been obtained;
call such general meetings of members or delegates as may be necessary for the proper conduct of the liquidation;
take possession of the books, documents and assets of the co-operative society;
Co-operative Societies 73
sell, convey, transfer, assign, exchange, surrender and yield up, lease, mortgage, charge, recover, reassign, or otherwise deal with, all or any part of the properties of the co-operative society, and deal with the proceeds thereof in any manner for the benefit, or in the interest, of the co-operative society or the members, depositors, creditors or customers of, or persons having any lawful dealings or transactions with, the co-operative society;
enter into any arrangement, agreement, or scheme with any person whereby all or part of the properties of the co-operative society are sold, conveyed, transferred, assigned, exchanged, surrendered and yielded up, leased, mortgaged, charged, reassigned, or otherwise disposed of, to any person in consideration of such person agreeing to meet all, or a specified part of, the liabilities of the co-operative society including the deposit liabilities of the co-operative society;
enter into any arrangement, agreement, composition, compromise, or scheme, with any depositors, creditors, customers or persons having any lawful dealings or transactions with the co-operative society whereby any right of any such person, or any liability of the co-operative society to any such person, is made subject to the arrangement, agreement, composition, compromise or scheme entered into by the liquidator;
employ any person as an employee of the co-operative society, or terminate the employment of any employee of the co-operative society, in accordance with the terms of the contract of service, or take such action, including disciplinary action and punishment, as may be deemed necessary, appropriate or expedient in respect of such employment or termination;
carry on the business of the co-operative society so far as may be necessary for winding it up beneficially; and
74 Laws of Malaysia ACT 502
arrange for the distribution of the assets of the prescribed co-operative society in a convenient manner when a scheme of distribution has been approved by the
Commission.
Notwithstanding paragraph (1)(o), the liquidator of a prescribed co-operative society is not entitled to issue any loan.
prescribed co-operative society
“prescribed co-operative society” means a co-operative society prescribed by the Commission by order in writing according to its class, category, type, activity and description;
A liquidator may refer any dispute to the Commission, and in relation to such dispute section 82 shall apply as if such dispute were a dispute touching the business of a co-operative society.
co-operative society
“co-operative society” means an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise which is registered under this Act;
A liquidator shall deposit the funds and other assets of a dissolved co-operative society which are collected by him or which come into his possession as liquidator in such manner and in such place as may from time to time be determined by the Commission.
deposit
“ deposit” means a sum of money— (a) received or paid on terms under which it will be repayable, with or without return or interest or at a premium or discount; or (b) received or paid on terms under which it will be repayable, either wholly or in part, with any consideration in money or money’s worth, and such repayment being either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it, regardless whether the transaction is described as a loan, an advance, an investment, a saving, a sale or a sale and repurchase, but does not include money paid bona fide— (i) by way of an advance or a part payment under a contract for the sale, hire or other provision of property or services, and is repayable only in the event that the property or services is not or are not in fact sold, hired or otherwise provided; (ii) by way of security for the performance of a contract or by way of security in respect of any loss which may result from the non-performance of a contract; and (iii) without prejudice to subparagraph (ii), by way of security for the delivery up or return of any property, whether in a particular state of repair or otherwise, and shall include the money deposited by any person with a co-operative society in a fixed deposit account or a savings account or other deposit account but does not include a share, subscription or specific savings; Co-operative Societies 13
A liquidator shall, every three months, or at such lesser intervals as the Commission may direct, submit to the Commission a report stating the progress made in winding up the affairs of the co-operative society, and shall, on completion of the liquidation proceedings, submit a final report and make over to the Commission all books, registers and accounts belonging to the co-operative society and all books and accounts relating to such proceedings kept by him.
Any liquidator appointed under this Act shall in so far as such powers are necessary for carrying out the purposes of this section, have power to summon and enforce the attendance of parties and witnesses and to compel the production of documents by the same means and (so far as may be) in the same manner as is provided for in the case of a
Sessions Court.
lf the Commission has, pursuant to subsection (4), determined that the funds of a dissolved co-operative society be remitted to it, such funds shall be held by it in a Trust Account to be known as the Co-operative societies Liquidation Account pending their distribution to the beneficiaries in accordance with a scheme to be approved by it.
The funds held in the Co-operative Liquidation Account may be deposited or invested in accordance with the regulations, and the
Co-operative Societies 75
net income from such deposit or investment shall be credited to the Co-operative Central Fund which shall be held and administered by the
Commission in accordance with the regulations.