LAND DEVELOPMENT ACT 1956

This Act shall apply throughout Malaysia.

Interpretation

in the case of the Authority, from the first day of July in each year or from such other date as the Authority may from time to time determine;

in the case of a board, from the first day of April in each year or from such other date as the State Authority may from time to time direct;

“Fund” or “Land Development Funds” means the Land

Development Fund established under section 7;

“local authority” means any municipality or other local government authority established in accordance with any written law;

“local land development board” or “board” means a local land development board established under section 30;

“member” or “member of the Authority” means any member of the Authority appointed under section 15, and includes the

Chairman, a temporary Chairman and any temporary member;

“Minister” means the Minister charged with responsibility for the Federal Land Development Authority;

“State Authority” has the same meaning assigned thereto in the National Land Code [Act 56 of 1965];

“Treasury” shall have the meaning assigned to it under the

Financial Procedure Act 1957 [Act 61].

The Authority shall have the following duties:

The Authority shall have power, for the purpose of the discharge of its duties under subsection (2)—

The Authority shall not promote, carry out, assist or participate in any such project or activity as is referred to in this section in the State of Sarawak, until the concurrence of the

Yang di-Pertua Negeri has first been obtained, and in any other

State, until such measures for consultation with the Government of such State or with any Department of the Federal Government as appear to the Minister to be appropriate have been taken.

The Authority may, with the approval of the Minister—

The Authority shall furnish the Minister with such returns, accounts and other information with respect to its property and activities as he may from time to time require.

Disposal of capital assets

as to the disposal of capital assets; or

as to the application of the proceeds of such disposal, notwithstanding that the directions may be of a specific character:

Provided that no such direction shall, so long as any sum borrowed by the Authority in accordance with this Act remains outstanding, be given except with the concurrence of the Treasury.

Additional functions of the Authority

such capital sums as may be provided from time to time for the purposes of the Authority by the Dewan Rakyat;

such capital sums as may be allocated from time to time to the Authority from loan funds;

sums borrowed by the Authority for the purpose of meeting any of its obligations or discharging any of its duties;

any property, investments, mortgages, charges or debentures acquired by or vested in the Authority; and

all other capital assets which may in any manner become payable to or vested in the Authority in respect of any matter incidental to its powers and duties.

The charges on any amount which may be allocated to the

Authority from loan funds shall be met by the Authority:

Provided that all or any part of such charges may be met from the general revenues of Malaysia with the approval by resolution of the Dewan Rakyat.

In this section the expression “loan funds” means such sums as may be made available from time to time to the Government by way of loan.

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Financial Provisions

Duty to conserve Fund

its obligations under subsection 7(2) and section 9; and

depreciation and interest on capital:

Provided that the Minister may, with the concurrence of the

Treasury direct that such expenditure or class or description of expenditure as may be specified in such direction shall be treated as irrecoverable.

Reserve fund

The management of the reserve fund, the sums to be paid from time to time to the credit thereof and the application thereof shall be as the Authority may determine:

Provided that no part of the reserve fund shall be applied otherwise than for the purposes of the Authority.

Powers of expenditure

pay any expenses lawfully incurred by the Authority, including survey, legal and other fees and costs, and the remuneration of agents, technical advisers, officers or servants appointed or employed by the Authority, including travelling expenses, subsistence allowances and contributions to any provident fund established by the Authority under this Act;

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pay any other expenses, costs or expenditure properly incurred or accepted by the Authority in the execution of its duty or in the discharge of its functions under this Act;

purchase or hire plant, equipment, machinery, stores and any other materials and pay the cost of the acquisition of any land and the erection of any buildings and the carrying out of any works and undertakings in the execution of its duty or in the discharge of its functions under this Act;

repay any moneys borrowed under this Act and the interest due thereon or set apart any sum required to be transferred to a sinking fund for the purpose of making provision for the repayment of such moneys and the interest thereon.

Gifts

the provision of working capital;

the fulfilling of the duties of the Authority under this

Act;

the fulfilling of such additional functions as may be undertaken by the Authority under this Act;

the redemption of any shares or stock which it is required or entitled to redeem;

any other expenditure properly chargeable to capital account.

The Authority may make rules not inconsistent with this

Act to provide for such matters in connection with shares, stock, bonds, debentures or debenture stock issued under this Act as may appear necessary or expedient to the Authority, and, in particular, for regulating the method of issue, transfer, redemption, or other dealing with such shares, stock, bonds, debentures or debenture stock.

Bank guarantee 12b. The Authority or its corporation established under section 42

may, in the normal course of performing its duties, issue one or more bank guarantees to any person for such purpose and to such extent as the Authority may, with the approval of the Minister, determine.

Investments

The accounts of the Authority and of each such corporation shall be audited by auditors to be appointed annually by the

Authority.

After the end of each financial year, as soon as the accounts of the Authority and of each such corporation shall have been audited, the Authority shall cause copies of the statements of account to be transmitted to the Ministers, together with a copy of any report or observations made by the auditors on any statement or on the accounts made by the auditors on any statement or on the accounts of the Authority or of any such corporation.

A copy of every such statement and report or observations shall be laid before the Dewan Rakyat.

Incorporation, Constitution and Procedure

Constitution of Authority

The Authority shall consist of—

If the Chairman is unable to exercise his functions under this Act owing to illness, absence from Malaysia or for any other cause whatsoever, the Minister may appoint a person, whether a member of the Authority or not, to be a temporary Chairman, who shall perform all the duties and exercise all the powers which under this Act are exercisable by the Chairman.

The Minister may appoint any person to be a temporary member of the Authority during the temporary incapacity through illness or during the temporary absence from Malaysia of any member.

Any person ceasing to be a member of the Authority shall be eligible for re-appointment.

The Minister may at any time accept the resignation of any member of the Authority.

The Minister may at any time revoke the appointment of any member of the Authority, if he thinks it expedient so to do, without assigning any reason therefor.

Common seal

Until a seal is provided by the Authority under this section a stamp bearing the inscription “Federal Land Development

Authority” may be used as the common seal.

The common seal, or the stamp referred to in subsection (2)

so long as it is used as the common seal, shall be in the custody of the Chairman and all deeds, documents and other instruments requiring the seal of the Authority shall be sealed with the seal or stamp of the Authority in the presence of the Chairman and of a member or an officer of the Authority authorized by the

Authority to act in that behalf, who shall sign every such deed, document or other instrument to which such seal or stamp is affixed and such signing shall be sufficient evidence that such seal or stamp was duly and properly affixed and that the same is or is used as the lawful seal of the Authority.

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The seal or stamp of the Authority shall be officially and judicially noticed.

(Deleted by L.N. 477 of 1965).

Salaries and fees payable to members of Authority

Any committee appointed under this section may appoint one or more sub-committees.

Any committee or sub-committee so appointed shall conform to any instructions from time to time given to it by the Authority or the committee by which it was appointed, and the Authority or such committee may at any time discontinue or alter the constitution of any committee or sub-committee so appointed.

Members not to vote on matters in which they are interested

A member shall not be deemed to have a share or interest in any such contract or arrangement by reason only of his being a shareholder in a company with which it is proposed that the

Authority should enter into such contract or arrangement unless he has a controlling interest in such company.

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Quorum and proceedings of Authority

The Chairman may, subject to such conditions and restrictions as he may consider necessary, delegate the exercise of all or any of the powers or the performance of all or any of the duties conferred on him by or under this Act to the General Manager appointed under section 22:

Provided that no such delegation shall affect the exercise of any such power or the performance of any such duty by the

Chairman.

Appointment of a General Manager, officers and servants

The power of dispensing with the services of any officer or servant of the Authority for any reason other than the misconduct of such officer or servant, or of permitting any such officer or servant to retire on a gratuity or compassionate allowance shall, subject to the aforesaid provisions, be exercised by the Authority alone.

Any officer or servant aggrieved by any decision of the

Chairman in the exercise of his powers under subsection (1) may appeal to the Authority.

Authority to frame regulations governing conditions of service

Without prejudice to the generality of the foregoing provisions of this section such regulations may provide for—

Any regulations made under this section shall not come into operation until they have been submitted to and approved by the Minister.

Provident fund, pensions and superannuation schemes

establish, maintain, administer or continue to maintain and administer and subsequently wind-up a provident fund for the benefit of its officers and servants or any section of such officers and servants and make regulations in respect thereof;

enter into arrangements or agreements with any local land development board or corporation for the establishment, maintenance and administration and subsequent winding up of a joint provident fund for the benefit of such officers and servants and of the officers and servants or a section of the officers and servants of such board or corporation and subject to any such arrangement or agreement, make regulations in respect thereof;

establish, maintain and administer a pension scheme for payments of pensions, gratuities or other allowances on superannuation, resignation, retirement or discharge of officers and servants of the Authority or any section of such officers and servants and for the establishment and maintenance of a pension fund and make regulations in respect thereof; and

establish and administer a superannuation scheme for the granting of such gratuities and allowances on death, superannuation, resignation, retirement or discharge of

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subordinate officers and servants of the Authority as may be deemed expedient and for the granting of such gratuities and allowances as may be deemed expedient to any one or more of the surviving dependants of any person who having been employed as a subordinate officer or servant of the Authority dies after having been superannuated or discharged or after having resigned or retired may make regulations in respect thereof.

No gratuity, allowance or other payment payable out of any such provident fund or under any such pension or superannuation scheme nor any right or interest acquired by any person there under shall be assignable or transferable or liable to be attached, sequestrated or levied upon for or in respect of any debt or claim whatsoever other than a debt due to the Authority.

Any moneys paid out of any such provident fund on the death of any person shall be deemed to be impressed with a trust in favour of the persons entitled thereto under the will or intestacy of such deceased person, but shall not be deemed to form part of his estate or be subject to his debts.

Any person may by will or by a memorandum under his hand appoint a trustee or trustees of the moneys payable on his death out of any such provident fund and may make provision for the appointment of a new trustee or new trustees of such moneys and for the investment thereof.

If at the time of the death of any person or at any time afterwards there is no trustee of such moneys or it is expedient to appoint a new trustee or new trustees, then and in any such case a trustee or trustees or a new trustee or new trustees may be appointed by the High Court or a Judge thereof.

The receipt of a trustee or trustees duly appointed, or in default of any such appointment and of written notice thereof to the Authority the receipt of the legal personal representative of a deceased person, shall be a discharge to the Authority for any moneys payable on his or her death out any such provident fund.

Any officer or servant of the Authority who is a contributor to any such provident fund shall, if he is dismissed the service of the Authority for fraud or dishonesty or misconduct, which

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involves pecuniary loss to the Authority, or retires from or resigns his office with intent to escape discharge or dismissal in consequence of such fraud, dishonesty or misconduct, forfeit, at the absolute discretion of the Authority, all or any part of his contribution to the fund and the interest accrued thereon and the accumulations thereof as the Authority in its discretion thinks fit.

Any employee of the Authority who would otherwise be entitled to any benefit under any such pension scheme shall, if he is dismissed from the service of the Authority for fraud or dishonesty or misconduct, which involves pecuniary loss to the

Authority, or retires from or resigns his office with intent to escape discharge or dismissal in consequence of such fraud, dishonesty or misconduct, forfeit and lose the whole or such part of such benefit as the Authority may in its absolute discretion direct.

With the approval of the Minister the Authority may, in its discretion, in consideration of long or special services of any officer or servant of the Authority whose case does not come within the scope and effect of the Authority’s provident fund, pension scheme or superannuation scheme regulations, pay to such officer or servant, on his retirement or discharge, or to any surviving dependants of such officer or servant, upon his death, a gratuity or compassionate allowance on such terms and conditions as the Authority may determine.

Any regulations made under paragraph (1)(b) may, notwithstanding anything contained in the Interpretation Acts 1948

and 1967 [Act 388], be made to operate retrospectively to any date whether before or after the coming into force of this Act.

Contracts and Delegation

Contracts and execution of documents, etc.

The Authority may at the time of delegating any power or authority under subsection (1) to any member or committee or at any time thereafter give directions as to the manner in which such delegated power or authority is to be exercised and may at any time revoke, modify or increase such delegation.

Annual Report

Annual report

A copy of every such report shall be laid before the Dewan

Rakyat.

Regulations

Regulations

defining the relations of the Authority with boards or corporations;

prescribing the system of management of the Authority and the responsibilities and control of officers and servants of the Authority;

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imposing fees in such cases as may be determined by the

Authority;

regulating the opening, keeping, closing and audit of accounts of boards and corporations;

generally for the exercise of their powers and duties under this Act.

A board shall have power, for the purpose of the discharge of its duty under this Act—

In addition to the duties imposed under this Act, a board may undertake such other functions and administer and expend such other moneys for such purposes as the State Authority may assign to the board and in so doing the board shall be deemed to be fulfilling the purposes of this Act and this Act shall apply to the board in respect of such functions and the administration and expending of such moneys:

Provided always that the accounts of such moneys shall be kept separate and apart from those of the board.

Directions to boards

The power conferred upon a State Authority by the preceding subsection to give directions to a board shall extend to the giving of directions—

Every board shall furnish the State Authority with such returns, accounts and other information with respect to its property and activities as he may from time to time require.

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Funds

Establishment of fund

The fund shall consist of—

The management of the reserve fund, the sums to be paid from time to time to the credit thereof and the application thereof shall be as the board may determine:

Provided that no part of the reserve fund shall be applied otherwise than for the purposes of the board.

Powers of expenditure

any loan made by the board;

any expenses lawfully incurred by the board including survey, legal and other fees and costs, and the remuneration of any officer or servant appointed and employed by the board, including superannuation, allowances or gratuities;

any other expenses, costs or expenditure properly incurred or accepted by the board in the execution of its duty or the discharge of its functions.

Borrowing powers and gifts

A board may accept any gifts made to the board for all or any of the purposes for which the board was established and, subject to the terms of any gift, apply them for this purpose in accordance with this Act.

A board may, with the approval of the State Authority, enter into contracts of guarantee or indemnity for the purpose of facilitating the acquisition or erection of dwelling houses by officers or other servants of the board.

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Investments

The accounts of the board shall be audited by auditors to be appointed annually by the State Authority.

At the end of each financial year, as soon as the accounts of the board shall have been audited, the board shall cause copies of the statement of account to be transmitted to the State Authority together with a copy of any report or observations made by the auditors on any statement or on the accounts of the board.

The State Authority shall cause a copy of every such statement of account to be published in the Gazette.

Constitution and Procedure

Constitution of boards

There shall be paid to the Chairman and members of a board such salaries, fees and allowances for expenses as may from time to time be determined by the State Authority.

Section 19 shall apply, mutatis mutandis, to meetings of a board and of any committee thereof.

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Officers and Servants

Appointment, etc. of officers and servants

A copy of every such report shall be laid before the

Legislative Assembly.

An order under subsection (1) shall, in addition to the matters referred to in section 43, make provision in respect of the following:

the purposes and objects for which the board or corporation is established;

the right, powers, duties and functions of such board or corporation;

the terms of office and duties of the Chairman and members of the board or corporation;

the delegation of the duties, powers or functions of the board or corporation;

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the quorum, proceedings and meetings of the board or corporation;

the execution of instruments and the mode of entering into contracts by and on behalf of the board or corporation and the proof of documents purporting to be executed, issued or signed by the board or corporation or a member, officer or servant thereof;

the relations between the board or corporation and the appropriate authority and the rights of control over such board or corporation by the appropriate authority;

the system of management thereof;

the terms and conditions of service of its officers and servants.

Subject to this Act and to any provision made under subsection (1), a board or corporation shall have power to regulate its own procedure.

Nothing in this section shall be deemed to authorize the appropriate authority to establish any board or corporation for any purpose or object more extensive in scope than the purposes or objects for which the Authority was constituted or to confer on any board or corporation any right, duty, power or function which is not within the rights, duties, powers or functions of the

Authority under this Act.

The appropriate authority may by order published in the

Gazette direct that any board or corporation established by it shall be wound up and dissolved.

Upon the dissolution of any board or corporation under this section the assets of the board or corporation, as the case may be, after payment of all liabilities shall be transferred to and vested in the appropriate authority.

The winding up of a board or corporation under this section shall be conducted in such manner as may be prescribed.

In this section and section 44 the expression “appropriate authority” means the authority by which a board was established under section 30 or by which a corporation was established under section 42.

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Incorporation

Every such board and corporation shall have a common seal, which shall bear such device as the board or corporation, as the case may be, with the approval of the appropriate authority, may approve, and such seal may from time to time be broken, changed, altered and made anew by the board or corporation with the approval of the appropriate authority, as the board or corporation shall think fit.

Until a seal is provided by a board or corporation under this section a stamp bearing the name of the board or corporation may be used as a common seal.

The common seal, or the stamp referred to in subsection (3)

so long as it is used as the common seal, shall be in the custody of such person as the board or corporation shall direct and all deeds, documents and other instruments requiring the seal of such board or corporation shall be sealed with the seal or stamp of such board or corporation in the presence of such persons as the board or corporation, as the case may be, with the approval of the appropriate authority, shall direct, who shall sign every such deed, document or other instrument to which such seal or stamp is affixed and such signing shall be sufficient evidence that such seal or stamp was duly and properly affixed and that the same is or is used as the lawful seal of such board or corporation.

The seal or stamp of every board or corporation shall be officially and judicially noticed.

(Deleted by L.N. 477 of 1965).

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postpone, for any time not exceeding ten years, the payment of any sum due for principal and interest or for either principal or interest to it in respect of a loan made by

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it upon such terms and conditions for the carrying out of the purposes for which such loan was made and for the ultimate repayment of such principal or payment of such interest as it may deem necessary;

from time to time extend the period for the repayment of any loan, or compound or release any loan or any part thereof subject to such terms and conditions as it may deem fit.

Payment of loan before due date

from time to time, make or cause to be made such enquiry as may be necessary to ensure that the loan is being applied to the purposes for which it was made;

require financial statements in such detail as it may determine to be submitted by the person, body or authority in receipt of the loan biannually or at shorter intervals at the discretion of the Authority or board, as the case may be, and such person, body or authority shall comply with such request.

The Authority or a board may authorize in writing any of its officers or any other person to make such enquiry, and the person, body or authority in receipt of the loan shall produce to such officer or person all the relevant books, documents and other matters and things necessary for the purposes of the enquiry.

Any person who contravenes paragraph (1)(b) or subsection (2)

shall be liable to a fine of one thousand ringgit.

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Order upon such enquiry