Malaysia legislation
Section 28
Section 28
Prohibitions in the event of contravention
(a)
in respect of any shares which are the subject of the contravention, a prohibition on—
(i)
the transfer of, or the carrying out of the agreement to transfer, such shares, or, in the case of unissued shares, the transfer of, or the carrying out of the agreement to transfer, the right to be issued with them;
(ii)
the exercise of any voting rights in respect of such shares;
(iii)
the issue of any further shares in right of such shares or in pursuance of any offer made to their holder; or
(iv)
except in a liquidation, the payment of any sums due from the Bank on such shares, whether in respect of capital or otherwise; or
(b)
in respect of a contravention of section 26, a prohibition on the exercise of any right under any security, or right to transfer any property constituting such security.
(2)
A preliminary order under subsection (1) shall be served on the defaulting person as soon as practicable, and may be publicized in such manner as the Minister deems fit, if, in the opinion of the
Minister, it needs to be publicized.
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(3)
A preliminary order shall be binding on the defaulting person, on any person for the time being holding any shares to which such order applies, and on any other person specified in the order or to whom the order is directed.
(4)
Any person holding any shares to which a preliminary order applies shall within seven days after its service on the defaulting person, or such longer period as the Minister may allow, surrender such shares to the Minister.
(5)
No person shall be given an opportunity of being heard before the Minister makes a preliminary order under subsection
(1)
against him or which affects him in any manner.
(6)
Any defaulting person against whom a preliminary order has been made, or any other person prejudicially affected by such order, may, within fourteen days of the service of the order on the defaulting person, make representations in writing to the Minister applying for a revocation of the order on the ground that he had not contravened the provisions in relation to which the order has been made, or for a modification of the order on the ground that it would be just and proper to modify it for reasons to be specified in the representations.
(7)
The Minister may, after considering the representations made under subsection (6), either confirm the preliminary order, or revoke it, or vary it in such manner as he deems fit.
(8)
Where the Minister confirms a preliminary order, he may dispose of the shares surrendered to him under subsection (4) to such persons and to such extent as shall be consistent with the shares being held lawfully by the purchaser under this Act.
(9)
The proceeds of the disposal of the shares under subsection
(8)
shall be paid into the High Court, and any person claiming to be beneficially entitled to the whole or any part of such proceeds may, within thirty days of such payment into the High Court, apply to a judge of the High Court in chambers for payment out of the proceeds to him.
(10)
The Minister may give any instructions or directions to the directors or officers of the Bank as may be necessary or requisite to give effect to any order of the Minister under this section, or as may be incidental, ancillary or consequential to such order.
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Bank Simpanan Nasional Berhad
(11)
Any transaction, including any agreement or arrangement in relation to any shares, or interest in shares, or security, which is in contravention of any preliminary order, or of any order confirmed under subsection (7), or of any instruction or direction given by the Minister under subsection (10), shall be void and of no effect.
(12)
The satisfaction of the Minister under subsection (1) that any of the provisions of this Act referred to therein have been contravened by any person may be arrived at regardless as to whether or not there is any prosecution of any person for such contravention.
(13)
Any person who fails to comply with subsection (1) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both.
(14)
Any person who fails to comply with subsection (5) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both and, in the case of a continuing offence, to a further fine not exceeding five thousand ringgit for each day during which the offence continues after conviction.
(15)
Any person who fails to comply with subsection (10) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding one million ringgit and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.
Director, controller or manager of the Bank to be fit and proper person