Malaysia legislation
Section 8
Section 8
Registered company which promotes kootu funds to cease business
(2)
Every such company shall either—
(a)
within ninety days from 18 February 1971 take the necessary steps under the Companies Act 1965 to have its memorandum of association and (if any) articles of association altered so that they do not provide for it to carry on the business of promoting kootu funds; or
(b)
within ninety days from 18 February 1971 or within one month of the expiry of the total period for which permission may have been granted under subsection (3), whichever is the longer, either—
(i)
resolve by special resolution that it be wound up voluntarily, under paragraph 254(1)(b) of the
Companies Act 1965; or
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(ii)
resolve by special resolution that it be wound up by the Court and accordingly present a petition to the Court under paragraph 217(1)(a) of the
Companies Act 1965 for an order that it be wound up.
(3)
Notwithstanding subsection (1) and notwithstanding anything done under paragraph (2)(a) such company may, within ninety days from 18 February 1971, apply to the Registrar for permission to continue to operate such of its kootu funds, as are in operation on the date of coming into force of this Act till their respective operation has been completed, and the Registrar may grant or refuse such permission; if he grants such permission he shall specify the period for which it is granted and such period shall not exceed twelve months; and he may, on application by such company, and in his absolute discretion, grant, from time to time, extensions of such period but so that the aggregate of such extensions does not exceed twelve months.
(4)
For the purposes of subsection (3) the Registrar may, from time to time, give such directions to such company and make such enquiries from it as he deems expedient or necessary.
(5)
Where permission is granted under subsection (3) the
Registrar may, from time to time, impose such terms and conditions as he deems expedient or necessary.
(6)
The Registrar may, at any time, withdraw or modify any permission granted under subsection (3) or any term or condition imposed under subsection (5).
(7)
If such company is aggrieved by—
(a)
any decision made by the Registrar under subsection (3)
or (6); or
(b)
any direction given by the Registrar under subsection (4);
or
(c)
any term or condition imposed by the Registrar under subsection (5), such company may, within thirty days from the date on which any such decision, direction, term or condition was communicated to such company, appeal therefrom to the Minister whose decision shall be final.
Kootu Funds (Prohibition)
(8)
If default is made in complying with subsection (1) such company and every officer of such company who is in default shall be guilty of an offence and shall be liable to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding three years or to both:
Provided that such company shall not be liable for such offence in respect of such of its kootu funds as are in operation on the date of coming into force of this Act, from the time that an application by such company under subsection (3) is received by the Registrar and until the time that a decision thereon is made by the Registrar, and, thereafter, for so long as any permission granted by the Registrar under subsection (3) is in force:
And provided further that such permission shall be deemed to be not in force if such company commits a breach of any term or condition imposed by the Registrar under subsection (5).
(9)
“Registrar” in this section means the Registrar of Companies and does not include any Regional Deputy or Assistant Registrar of Companies.
Winding up on application by Minister