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Section 359

Assignment and variation of charge

of Companies Act 2016

ActIn forceProvision 359 of 768
Section 359

(a)

lodge with the Registrar a notice stating that he has become the new holder of the charge and the notice shall contain the information as may be determined by the Registrar; and

(b)

give a copy of the notice to the company.

(2)

If after a charge on the property of a company has been created and registered under this Subdivision there is a variation in the terms of the charge having the effect of—

(a)

varying the amount of the debt or liabilities, whether present or prospective, secured by the charge; or

(b)

prohibiting or restricting the creation of subsequent charges on the property, the company shall lodge with the Registrar a notice setting out the particulars of the variation as may be determined by the Registrar within thirty days from the variation occurs and upon payment of a prescribed fee.

(3)

For the purposes of subsection (2), if the amount of debt or liability secured by a registrable charge created by the company is—

(a)

unspecified; or

(b)

specified with further advances, any payment or advance made by the charge holder to the company in accordance with the terms of the charge shall not be regarded to be a variation in the terms of the charge.

(4)

A reference in this section to the charge holder in relation to a charge shall be construed as a reference to the trustee for debenture holders if the charge is constituted by a debenture or debentures and there is a trustee for the debenture holders.

(5)

The new holder of the charge who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit and, in the case of a continuing

360

offence, to a further fine not exceeding five hundred ringgit for each day during which the offence continues after conviction.