Section 42
Stop order
Where in the opinion of the Registrar—
(a)
a prospectus or product disclosure statement does not comply with or is not prepared in accordance with any provision of this Act;
54 Laws of Malaysia ACT 778
(b)
a prospectus or product disclosure statement contains a statement or information that is false or misleading;
(c)
a prospectus or product disclosure statement contains a statement or information from which there is a material omission; or
(d)
the management company has contravened any provision of the Companies Act 2016, the Registrar may, by stop order in writing served on the management company or such other person as the Registrar may determine, direct the management company or such other person not to allot, issue, offer, make an invitation to subscribe for or purchase or sell, further interests to which the prospectus or product disclosure statement relates, as the case requires.
(2)
Subject to subsections (3) and (4), the Registrar shall not make a stop order under subsection (1) unless the Registrar has given a reasonable opportunity to be heard to any affected person or the management company as to whether a stop order shall be made.
(3)
If the Registrar considers that by giving an opportunity to be heard would cause a delay that will be prejudicial to the public interest, the Registrar may make an interim stop order without giving the opportunity to be heard.
(4)
An interim stop order under subsection (3) shall, unless sooner revoked, have effect for sixty days from the date on which it is made or the conclusion of the hearing in subsection (2), whichever date is the later.
(5)
Where a stop order made under subsection (1) or an interim stop order made under subsection (3) is in force, this Chapter shall apply as if the prospectus or product disclosure statement has not been registered.
Interest Schemes
55
Stop order