Malaysia legislation
Section 27
Section 27
(2)
Notwithstanding subparagraph 25(1)(b)(ii), the Director
General of Insolvency may, if he is satisfied that—
(a)
the new youth society has been registered under this
Act;
(b)
the constitution and the rules of the new youth society are similar to the constitution and the rules of the old youth society;
(c)
the majority of persons who were lawful members of the old youth society immediately before the cancellation of its registration are members of the new youth society;
and
(d)
the governing body of the new youth society has given written undertaking that the new society will assume responsibility for all the aforesaid debts and liabilities then existing, apply to the High Court for an order for vesting all the assets, debts and liabilities of the old youth society and all its branches in the new youth society.
(3)
The Court may, if it is satisfied as to all the matters mentioned under subsection (2) approve such application as applied by the Director General of Insolvency with such modifications or variations as deem fit and expedient.
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Youth Societies and Youth Development
(4)
The application shall be made by way of originating summons which shall be published in the Gazette and advertised in newspapers in the national language and in English, circulating in Malaysia.
(5)
Any person likely to be affected or aggrieved by the decision of the Court, in his capacity as a member of either the old or new youth society or as a creditor of the old youth society may apply to the Court to appear and make representation thereon in accordance with *the Rules of the High Court.
(6)
Any person who was a lawful member of the old youth society immediately before the cancellation of its registration and who is not a member of the new youth society who does not object to the application of the Director General of Insolvency shall be discharged from all debts and liabilities of the old youth society and all its branches upon the making of the order sought by the Director General of Insolvency.
(7)
Upon a vesting order being made by the Court under subsection (3), all the property comprised therein shall vest accordingly in the new youth society without any further conveyance, transfer or assignment.
(8)
It shall be lawful for the Director General of Insolvency to do or take such action as may be necessary to manage any property or discharge the debts and liabilities of the old youth society although an application under subsection (2) is pending in the court.
(9)
The Director General of Insolvency shall publish such decision under subsection (3) in the Gazette and advertise it in newspapers in the national language and in English, circulating in
Malaysia, and thereupon the Director General of Insolvency shall be fully discharged from all his responsibilities and liabilities in the matter.
(10)
All costs and expenses incurred by the Director General of Insolvency in the matter shall be paid out of the assets of the old youth society and all its branches, in priority to all other debts and liabilities.
*NOTE—The Rule of High Court 1980 [P.U. (A) 50/1980] are repealed by Rules of Court 2012
[P.U.(A) 205/2012]—see Order 1 rules 1 and Order 94 rules 1 of Rules of Court 2012 [P.U.(A) 205/2012]
w.e.f. 1 August 2012.
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Act 668
(11)
All deeds, bonds, agreements, instruments and working arrangements subsisting immediately before the publication in the
Gazette of the decision of the Court under subsection (3) shall be of full force and effect against or in favour of the new youth society and enforceable as fully and effectually against the new youth society.
(12)
The provisions of subsections 25(3), (5) and (6) shall apply in relation to this section in the same manner as they apply in relation to section 25.