Malaysia legislation

Section 6

of COMMERCIAL VEHICLES LICENSING BOARD (AMENDMENT) ACT 2017

Section 6

The principal Act is amended by inserting after Part IV the following part:

“Part IVa

LICENSING OF INTERMEDIATION BUSINESS

Licensing of intermediation business 26a.  (1)  No person shall operate or provide an intermediation business unless he holds an intermediation business licence issued under this section.

(2)

An application for an intermediation business licence under this section shall be made to the Board in the form and manner as determined by the Board and shall be accompanied by the prescribed application fee and such information and documents as may be specified by the Board.

(3)

The applicant shall provide to the Board complete information of his financial standing to prove his ability to maintain and operate the intermediation business.

(4)

Subject to this Act, the Board may, on an application for an intermediation business licence under this section—

(a)

grant the application in full or in part or with such modifications as the Board thinks fit, and, upon payment of the prescribed fee, issue an intermediation business licence to the applicant; or

(b)

refuse the application.

(5)

Every intermediation business licence issued under this section shall set out the duration of the licence and the Board may attach to the intermediation business licence conditions that include—

(a)

the type and extent of intermediation business to be operated or provided by the holder of an intermediation business licence;

(b)

the general level of service to be provided to persons using services provided by the holder of an intermediation business licence;

(c)

the measures to safeguard the safety and security of persons using services provided by the intermediation business; and

(d)

the standards of performance to be complied with by the holder of an intermediation business licence in the operation of the intermediation business.

(6)

The Board may, at any time, add, cancel or vary any of the conditions attached to an intermediation business licence issued under this section.

(7)

The issuance of an intermediation business licence by the Board under subsection (4) shall not impose any liability on the Board for any loss or damage occasioned by any act, omission or default of the holder of an intermediation business licence.

(8)

A person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Commercial Vehicles Licensing Board (Amendment)

(9)

A holder of an intermediation business licence who fails to comply with any of the conditions attached to the licence under subsection (5) commits an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit but not more than two hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Renewal of licence 26b.  (1)  Subject to subsections (2) and (3), the Board may, on an application by the holder of an intermediation business licence, renew the intermediation business licence on such conditions as the Board thinks fit or refuse the application.

(2)

An application for the renewal of an intermediation business licence under subsection (1) shall be made at least ninety days before the date of expiry of the intermediation business licence and shall be accompanied by the prescribed renewal fee and such documents as may be specified by the

Board.

(3)

If the holder of an intermediation business licence fails to comply with subsection (2) and offers no reason which the

Board thinks reasonable, the Board may refuse to proceed with, hear or determine such application.

(4)

Where no application for renewal of an intermediation business licence has been submitted, the holder of an intermediation business licence shall, within fourteen days from the date of expiry of the intermediation business licence, return the intermediation business licence to the Board.

Application for variation 26c. On an application by a holder of an intermediation business licence for a variation of the intermediation business licence or the conditions of the intermediation business licence, the Board shall have full power in its discretion—

(a)

to grant the application in full or in part;

(b)

to refuse the application; or

(c)

to order any variation of the intermediation business licence or the conditions of the intermediation business licence other than the variation specified in the application.

Revocation or suspension of the intermediation business licence 26d.  (1)  The Board may, by written notice to the holder of an intermediation business licence and without any compensation, revoke or suspend any intermediation business licence issued under section 26a—

(a)

if any of the provisions of this Act or any of the conditions of the intermediation business licence has not been complied with;

(b)

if the issuance of the intermediation business licence was induced by a false representation of fact by or on behalf of the holder of an intermediation business licence; or

(c)

in the event of the death, incapacity, bankruptcy or, in the case of a company, liquidation of the holder of an intermediation business licence or, where a receiver or manager is appointed in relation to the business of providing intermediation business by the holder of an intermediation business licence:

Provided that the Board—

(A)

in the case of paragraph (a), may in lieu of revocation or suspension of the intermediation business licence appoint a third party to rectify the non-compliance and recover the costs of such rectification from the holder of an intermediation business licence;

(B)

in the case of a breach of any of the conditions of the intermediation business licence under paragraph (a), shall not revoke or suspend the intermediation business licence unless it is satisfied, after giving the holder of an intermediation business licence an opportunity of making any representation in writing he may wish

Commercial Vehicles Licensing Board (Amendment)

9

to make, that owing to the frequency of the breach, or to the breach having been committed wilfully or the danger to the public involved in the breach, the intermediation business licence should be revoked or suspended; or

(C)

in the case of a breach of any of the provisions of this Act under paragraph (a), or paragraph (b) or

(c)

, shall not revoke or suspend the intermediation business licence unless it is satisfied that, after giving the holder of an intermediation business licence an opportunity of making any representation in writing he may wish to make, the intermediation business licence should be revoked or suspended.

(2)

Where an intermediation business licence—

(a)

has been revoked, it shall have no effect from the date of revocation and the holder of an intermediation business licence shall within fourteen days from the date of revocation of the intermediation business licence return the intermediation business licence to the Board; or

(b)

has been suspended, the holder of an intermediation business licence who continues to operate or provide an intermediation business during the period of suspension, shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit but not more than ten thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Transfer of licence prohibited 26e.  (1)  Subject to subsection (3), an intermediation business licence issued under section 26a shall be personal to the holder of an intermediation business licence thereof, and shall not be transferred or assigned.

(2)

A holder of an intermediation business licence who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit but not more than ten thousand ringgit or to imprisonment for a term not exceeding one year or to both.

(3)

Notwithstanding paragraph 26d(1)(c), the Board may, in the event of the death, incapacity, bankruptcy or, in the case of a company, liquidation of the holder of an intermediation business licence or, where a receiver or manager is appointed in relation to the business of providing intermediation business of such holder of an intermediation business licence or, where for any reason the Board is satisfied that it would be unjust not to do so, authorize the transfer of such intermediation business licence.

Duty of the holder of an intermediation business licence to keep records, etc.

Quoted provision

Section 26f

(2)

A holder of an intermediation business licence who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit but not more than ten thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Duty of the holder of an intermediation business licence to inform Board 26g.  (1)  It shall be the duty of every holder of an intermediation business licence, at all times, to inform the Board immediately of the following matters:

(a)

any proceedings or claims instituted or made against the holder of an intermediation business licence which might have an adverse effect on his financial condition or on his ability to perform any condition under the intermediation business licence;

(b)

any reprimands or fines imposed on the holder of an intermediation business licence by the Government;

and

(c)

any change in the control of the holder of an intermediation business licence.

Commercial Vehicles Licensing Board (Amendment)

(2)

For the purposes of this section, “control”, in relation to a holder of an intermediation business licence, means having the power, directly or indirectly, to direct the management and policy of the holder of an intermediation business licence.

(3)

A holder of an intermediation business licence who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit but not more than ten thousand ringgit or to imprisonment for a term not exceeding one year or to both.”.

Amendment of section 27