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Section 71

Power of Registrar to intervene

of Interest Schemes Act 2016

ActIn forceProvision 71 of 92
Section 71
(1)

Notwithstanding anything in this Act, the Registrar shall have the power to intervene in the management of a scheme when he is satisfied that—

(a)

the scheme is unable to meet its obligation when they fall due;

(b)

the operation, management or administration of the scheme has not been conducted in accordance with the trust deed, supplemental trust deed, contractual agreement or supplemental contractual agreement; or

80 Laws of Malaysia ACT 778

(c)

the terms and conditions for the authorization of a scheme imposed by the Registrar have not been complied with.

(2)

In exercising the power under subsection (1), the Registrar may make one or more of the following:

(a)

order the management company to cease the issue or offer of the interests to the public until further notice;

(b)

require the auditor of the scheme to carry out an audit on the scheme and submit his report within the period as specified by the Registrar;

(c)

order the management company to wind up the scheme;

or

(d)

give such other directions as may be necessary to protect the interests of interest holders.