Malaysia legislation
Section 25
Section 25
(a)
the property of the youth society shall forthwith vest in the Director General of Insolvency, for the purpose of winding up the affairs of the youth society;
(b)
the Director General of Insolvency shall proceed to wind up the affairs of the youth society, and after satisfying and providing for all debts and liabilities of the youth society and the costs of the winding up shall pay the surplus assets, if any—
(i)
on the direction by the Minister, if the registration was refused or cancelled by virtue of an order under section 33 or on grounds stated in paragraph 9(3)(a) or subparagraph 20(1)(c)(ii) or if the members of the society so request, such surplus assets be paid to the Consolidated Fund; and
(ii)
in all other cases, to members of the youth society according to the rules of the youth society, or if there be no such rules, then the Director General of Insolvency shall prepare a scheme for the application of such surplus assets for the approval of the High Court;
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(c)
the application for approval of such scheme shall be made by way of originating summons and may be amended by the Court in such way as it thinks proper under the circumstances of the case;
(d)
upon the approval of the Court to such scheme or amended scheme being obtained, the surplus assets, the subject of such scheme shall be held and applied by the Director
General of Insolvency upon the terms and to the purposes prescribed in the order of the Court; and
(e)
for the purposes of the winding up the affairs of the youth society, the Director General of Insolvency shall have all the powers under any written law relating to bankruptcy or winding up of companies for the purpose of the realization of property under this Act.
(2)
The Registrar may, with the consent of the Minister, suspend the operation of this section to such extent and for such period as he may think expedient.
(3)
The Registrar or the Director General of Insolvency may require—
(a)
the governing body of the youth society, being the governing body existing immediately before the coming into effect of subsection (1) in relation to that youth society;
(b)
any member of such governing body; or
(c)
any person who was then or at any time previously an office-bearer, member or employee of that youth society, to furnish to the Registrar or the Director General of Insolvency, as the case may be, or to such other person as the Registrar or the
Director General of Insolvency may specify, any information in relation to the property, affairs, business, accounts or books of that youth society, or any other matter relating to that youth society, which may be required for the purposes of this section.
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Youth Societies and Youth Development
(4)
Subject to subsection (5), it shall not be an offence under this Act for anything done by any person mentioned under subsection (3) in complying with such subsection provided that such thing is otherwise lawfully done.
(5)
Any person mentioned under subsection (3) who fails to comply with any requirement of the Registrar or the Director
General of Insolvency under that subsection, or does anything outside the scope of, or contrary to, any authorization of the
Registrar or the Director General of Insolvency under subsection (3), commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding five years or to both.
(6)
For the purpose of subsection (3), “office-bearer” includes any person referred to in paragraphs 13(8)(a), (b) and (c).
(7)
For the avoidance of doubt, it is hereby declared that where the property of a registered youth society vests in the Director
General of Insolvency under paragraph (1)(a), the property of every branch of such youth society, regardless whether it is a lawful or an unlawful branch, shall also vest in the Director
General of Insolvency and this section shall accordingly apply to every such branch and its property.
Application of section 25 to unlawful branch of registered youth societies