ACT 28
KOOTU FUNDS (PROHIBITION) ACT 1971



Section 8. Registered company which promotes kootu funds to cease business.


(1) Upon the coming into force of this Act, a registered company which has its objects or as one of its objects the promotion of kootu funds (hereinafter in this section and in section 9 referred to as "such company") shall forthwith cease to carry on the business of promoting kootu funds.

(2) Every such company shall either-

(3) Notwithstanding the provisions of subsection (1) and notwithstanding anything done under subsection (2)(a) such company may, within ninety days from 18th February 1971, apply to the Registrar for permission to continue to operate such of its kootu funds, as are in operation on the date of coming into force of this Act till their respective operation has been completed, and the Registrar may grant or refuse such permission; if he grants such permission he shall specify the period for which it its granted and such period shall not exceed twelve months; and he may, on application by such company, and in his absolute discretion, grant, from time to time, extensions of such period but so that the aggregate of such extensions does not exceed twelve months.

(4) For the purposes of the provisions of subsection (3) the Registrar may, from time to time, give such directions to such company and make such enquiries from it as he deems expedient or necessary.

(5) Where permission is granted under subsection (3) the Registrar may, from time to time, impose such terms and conditions as he deems expedient or necessary.

(6) The Registrar may, at any time withdraw or modify any permission granted under subsection (3) or any term or condition imposed under subsection (5).

(7) If such company is aggrieved by-

such company may, within thirty days from the date on which any such decision, direction, term or condition was communicated to such company, appeal therefrom to the Minister whose decision shall be final.

(8) If default is made in complying with the provisions of subsection (1) such company and every officer of such company who is in default shall be guilty of an offence and shall be liable to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding three years or to both:

Provided that such company shall not be liable for such offence in respect of such of its kootu funds as are in operation on the date of coming into force of this Act, from the time that an application by such company under subsection (3) is received by the Registrar and until the time that a decision thereon is made by the Registrar, and thereafter, for so long as any permission granted by the Registrar under subsection (3) is in force:

And provided further that such permission shall be deemed to be not in force if such company commits a breach of any term or condition imposed by the Registrar under subsection (5).

(9) "Registrar" in this section means the Registrar of Companies and does not include any Regional Deputy or Assistant Registrar of Companies.


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