Section 40

any interest in land which is burdened with onerous covenants;

shares in corporations;

unprofitable contracts; or

any other asset that is not saleable, or not readily saleable, by reason of its binding the possessor thereof to the performance of any onerous act, or to the payment of any sum of money, the Special Administrator may within twelve months after he becomes aware of any of the above-mentioned asset, disclaim any such asset.

The rights of any person affected by the Special Administrator pursuant to the exercise of his power to disclaim under subsection (1)

shall be dealt with in the manner set out in the proposal and any compensation to such person shall rank as an unsecured debt.

The Special Administrator may not exercise his power under subsection (1) to disclaim any market contract.

For the purpose of subsection (3), a “market contract” shall have the meaning assigned to it under section 126B of the Securities

46 Laws of Malaysia

Industry Act 1983 and shall include futures contracts traded on futures market that are cleared through an approved clearing house.

Effect of appointment of Special Administrator