ACT 28
KOOTU FUNDS (PROHIBITION) ACT 1971



Section 4. Registration of a business which promotes kootu funds prohibited in the States of West Malaysia.


(1) There shall not be registered under the Registration of Businesses Act 1956 [Act 197] of the States of West Malaysia (hereinafter in this section referred to as "the Act") any business which promotes or is designed to promote kootu funds.

(2) No person shall obtain registration under the Act of any business which promotes or is designed to promote kootu funds.

(3) No person who carries on a business which is registered under the Act shall carry on the business of promoting kootu funds.

(4) Any associate of a business which, on the date of coming into force of this Act, is registered under the Act and which promotes or is designed to promote kootu funds shall forthwith cease to do such business and shall forthwith inform the Registrar that the business promotes or is designed to promote kootu funds and thereupon the Registrar shall forthwith revoke the certificate of registration of such business.

(5) The Registrar shall forthwith revoke the certificate of registration of a business if he is satisfied from the particulars of the business submitted under section 5 (1) of the Act that the business promotes or is designed to promote kootu funds, and inform, in writing, a person responsible that such certificate has been revoked and the reason therefor.

(6) Any associate of a business aggrieved by any decision made by the Registrar under subsection (5) may, within thirty days from the date on which the decision was communicated under subsection (5) to a person responsible, appeal therefrom to the Minister whose decision shall be final; while such appeal is pending it shall not operate as a stay of the revocation of the certificate of registration of the business unless the Minister directs otherwise.

(7) Any person who contravenes the provisions of subsection (2) or (3) and any associate of a business who fails to comply with the provisions of subsection (4) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(8) Nothing in this section shall prejudice or be deemed to prejudice any civil claim that any person, including a participant in a kootu fund, may have against any associate of a business of which the certificate of registration is revoked under the provisions of this section or who ceases to do business by reason of the provisions of this section.

(9) No person shall be entitled to any refund of fees as a result of the revocation of any certificate of registration of a business under this section.

(10) For the purposes of this section-



Copyright 2006 PNMB-LawNet. All rights reserved.