Pengurusan Danaharta Nasional Berhad Act 1998 · Updated to 1 Feb 2013 · Part VI · Management of Assets and Liabilities
41. Effect of appointment of Special Administrator
Official textFrom Laws of Malaysia Online, unchanged
Subject to subsection (6), on the appointment of the Special
Administrator, a moratorium shall take effect during which—
any petition for the winding up of the affected person shall be dismissed by the court;
no resolution may be passed or order made for the winding up of the affected person;
no receiver, receiver and manager or provisional liquidator, except any receiver, receiver and manager or provisional liquidator appointed by the relevant regulatory body in respect of any of the persons referred to in paragraph 27(c), may be appointed, or if appointed, his appointment shall immediately cease and he shall vacate his office;
no steps may be taken—
to create, perfect or enforce any security over any asset of the affected person;
to enforce a judgment over any asset of the affected person;
to re-possess any asset in the possession, custody or control of the affected person; or
to set off any debt owing to the affected person in respect of any claim against the affected person, except with the prior written consent of the Corporation;
no proceedings and no execution or other legal process may be commenced or continued with, and no distress
Pengurusan Danaharta Nasional Berhad 47
may be levied, against the affected person or its assets except with the prior written consent of the Corporation;
any application made under section 176 of the Companies
Act 1965 shall be adjourned sine die and any restraining order issued pursuant to subsection 176(10) of the
Companies Act 1965 shall be immediately discharged and set aside; and
no proceedings and no execution or other legal process may be commenced, or continued with, against any person providing a guarantee or acting as a guarantor for the liability of the affected person in respect of that liability except with the prior written consent of the Corporation.
The duration of the moratorium provided for in subsection (1)
shall be for a period of twelve months commencing from the date of the appointment of the Special Administrator and may be terminated at any time by the Corporation with the approval of the Oversight
Special Administrator
“Special Administrator” means the person appointed under section 23 or 24;
Committee.
If—
the Corporation receives the Independent Advisor’s report before the expiry of the period specified in subsection (2), the Corporation may if it deems fit, extend the moratorium for a further period of twelve months or the duration required to complete the implementation of the proposal approved under section 46 or 48, as the case may be; or
in the opinion of the Corporation it is unlikely to receive the Independent Advisor’s report before the expiry of the period specified in subsection (2), or in any other case, upon the recommendation of the Corporation for an extension of the moratorium, the Oversight Committee may extend the moratorium for such period or periods as the Corporation may recommend or such other period or periods as the Oversight Committee may deem appropriate.
If the period of the moratorium is extended pursuant to subsection (3), a notice of the extension shall be published in at least
48 Laws of Malaysia two national daily newspapers one of which shall be in the national language.
The Corporation shall not be liable to an action or other damages in respect of a refusal to give its consent under subsection (1).
Nothing in this section shall prevent any civil or criminal proceedings from being instituted or continued by any regulatory body under any written law against the affected person.
affected person
“affected person” means— (a) any company owing a duty or liability under a credit facility to the Corporation or any subsidiary of the Corporation, whether present, future, vested or contingent; (b) any subsidiary of the company referred to in paragraph (a); (c) any company which has provided security for the performance of or discharge of a duty or liability owed by any person to the Corporation or any subsidiary of the Corporation, whether present, future, vested or contingent; or Pengurusan Danaharta Nasional Berhad 31 (d) any company where at least two per cent of its share capital has been charged, pledged or mortgaged by any person to secure the performance of or discharge of a duty or liability owed by any person to the Corporation or any subsidiary of the Corporation, whether present, future, vested or contingent;
Any decision of the Corporation under this section shall be final and binding and shall not be reviewed, quashed, appealed against or set aside by any court.
Any person who contravenes subsection (1) commits an offence and shall on conviction be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
Terms defined in this Act
affected person
Defined · s 21“affected person” means— (a) any company owing a duty or liability under a credit facility to the Corporation or any subsidiary of the Corporation, whether present, future, vested or contingent; (b) any subsidiary of the company referred to in paragraph (a); (c) any company which has provided security for the performance of or discharge of a duty or liability owed by any person to the Corporation or any subsidiary of the Corporation, whether present, future, vested or contingent; or Pengurusan Danaharta Nasional Berhad 31 (d) any company where at least two per cent of its share capital has been charged, pledged or mortgaged by any person to secure the performance of or discharge of a duty or liability owed by any person to the Corporation or any subsidiary of the Corporation, whether present, future, vested or contingent;
asset
Defined · s 2“asset” includes any credit facility, property and business or enterprise of any kind;
Independent Advisor
Defined · s 2“Independent Advisor” means a person appointed under section 26;
security
Defined · s 2“security” includes a mortgage or charge, whether legal or equitable, debenture, bill of exchange, promissory note, guarantee, lien or pledge, whether actual or constructive, hypothecation, indemnity, undertaking or other means of securing payment or discharge of a debt or liability, whether present or future, or whether vested or contingent;
Special Administrator
Defined · s 2“Special Administrator” means the person appointed under section 23 or 24;
Part VII
Additional Rights
Part VIII
Application of Other Acts
Part IX
Application of the Act
Part X