Section 3

Any land held in the name of the Federal Lands Commissioner and which immediately before the vesting date is occupied by the

Institute shall continue to be occupied by the successor company under a lease at a rental and on such terms to be agreed upon by the

Federal Lands Commissioner and the successor company.

Standards of Malaysia 11

Notwithstanding subsection (1), only the functions of the

Institute which under this Act are not vested in the Director General and any other body shall be transferred to the successor company.

Every property vested by virtue of subsection (1) in the successor company shall be so vested in the company for the like title or interest as the same was vested or held immediately before the vesting date.

Every chose in action vested by virtue of subsection (1) in the successor company may, after the vesting date, be sued on, recovered or enforced by the company in its own name and it shall not be necessary for the company or the Institute to give notice to the person bound by the chose in action of the vesting effected by subsection (1).

Every right and liability vested by subsection (1) in the successor company may, on or after the vesting date, be sued on, recovered or enforced by or against the company in its own name and it shall not be necessary for the company or the Institute to give notice to the person whose rights and liabilities are affected by the vesting under subsection (1).

Any pending legal proceedings by or against the Institute which relate to any property, right and liability transferred to and vested in the successor company by virtue of subsection (1) may, on or after the vesting date, be continued by or against the successor company.

In the case of rights and liabilities arising under any loans which vest in the successor company on the vesting date, the company may enter into such arrangements or agreements over such rights and liabilities with the Government of Malaysia or any third party.

On or after the vesting date, any agreement relating to any property, rights and liabilities transferred to and vested in the successor company under subsection (1) to which the Institute was a party immediately before the vesting date, whether in writing or not, and whether or not of such a nature that rights and liabilities thereunder could be assigned by the Institute, shall have effect as if the company had been a party to the agreement.

Notwithstanding subsection (9), any agreement entered into by the Institute, the subject matter of which relates to any matter falling

12 Laws of Malaysia ACT 549

within the powers and functions of the Director General under this

Act, shall, upon the vesting date devolve upon the Government and shall have effect as if the Government had been a party to the agreement.

Where by virtue of subsection (1), any property is transferred to and vested in the successor company, the provisions in Part Thirty of the National Land Code [Act 56 of 1965] shall, for the purpose of effecting the registration of such vesting, apply to the successor company, as if it were a public authority.