KOOTU FUNDS (PROHIBITION) ACT 1971
Section 5. Licensing of a business which promotes kootu funds prohibited in Sabah.
(1) There shall not be licensed under the Trades Licensing Ordinance of Sabah [Cap. 144] (hereinafter in this section referred to as "the Ordinance") any business which promotes or is designed to promote kootu funds.
(2) No person shall obtain a trading licence under the Ordinance in respect of any business which promotes or is designed to promote kootu funds.
(3) No person who carries on a business which is licensed under the Ordinance shall carry on the business of promoting kootu funds.
(4) Any proprietor or partner of a business which, on the date of coming into force of this Act, is licensed under the Ordinance and which promotes or is designed to promote kootu funds shall forthwith cease to do such business and shall forthwith inform the licensing authority that the business promotes or is designed to promote kootu funds and thereupon the licensing authority shall forthwith revoke the trading licence in respect of such business.
(5) The licensing authority shall forthwith revoke the trading licence of a business if it is satisfied from the particulars of the business submitted to the licensing authority under the Ordinance that the business promotes or is designed to promote kootu funds, and inform, in writing, the proprietor or partner of the business that such trading licence has been revoked and the reason therefor.
(6) Any proprietor or partner of a business aggrieved by any decision made by the licensing authority under subsection (5) may, within thirty days from the date on which the decision was communicated under subsection (5), 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 trading licence of the business unless the Minister directs otherwise.
(7) Any person who contravenes the provisions of subsection (2) or (3) and any proprietor or partner 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 proprietor or partner of a business the trading licence of which 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 trading licence under this section.
(10) For the purposes of this section-
(a) a licensing authority may exercise all the powers conferred upon it under the Ordinance in as full and ample a manner as if this section formed a part of the Ordinance; and (11) "Minister" in this section means the Minister referred to in the Ordinance.
(b) the provisions of section 2 of the Ordinance shall apply as if this section formed a part of the Ordinance.
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