Section 4
Nature of schemes
A scheme shall be either—
(a)
an investment scheme;
(b)
a recreational membership scheme;
(c)
a time-sharing scheme; or
(d)
a combination of such schemes.
(2)
A scheme is an investment scheme if the interest holder does not have day-to-day control over the operation of the scheme, whether or not the interest holder has the right to be consulted or to give direction and that—
Interest Schemes
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(a)
the interest holder contributes money or money’s worth as a consideration to acquire a right or interest to profits, assets or realisation of any financial or business undertaking of the scheme, whether the right or interest are actual, prospective or contingent and are enforceable or not; or
(b)
the contribution by the interest holder is pooled or used in common enterprise, to produce financial benefits, or benefits consisting of rights or interests in property for which the interest holder is led to expect profits, rent or interest from the efforts of the promoter of the enterprise or a third party.
(3)
A scheme is a recreational membership scheme if—
(a)
in substance and irrespective of the form, the scheme involves the investment of money in or under such circumstances that an interest holder acquires or may acquire an interest or right in respect of property which under or in accordance with the terms of investment will or may, at the option of the investor, be used or employed in common with any other interest or right in respect of property acquired in or under like circumstances and includes an entitlement to a right to use or enjoy any sport, recreational, holiday or other related facilities for a consideration; and
(b)
the scheme is to operate for a duration of not less than twelve months whether or not on a recurring basis.
(4)
A scheme is a time-sharing scheme if—
(a)
an interest holder is or may become entitled to use, occupy or possess for two or more periods during the period for which the scheme, whether in Malaysia or elsewhere is to operate, property to which the scheme relates; and
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(b)
the scheme is to operate for a period of not less than three years.
(5)
A scheme referred to in subsection (2), (3) or (4) may be in the form of a Shariah compliant scheme.