Disqualification of bankrupt
(1) Where a debtor is adjudged bankrupt he shall subject to this Act, be disqualified for—
(a) being appointed or acting as a Sessions Court Judge or Magistrate;
(b) being nominated or elected to or holding or exercising the office of Councillor of a local authority.
(2) The disqualifications to which a bankrupt is subject under this section shall be removed and cease if and when—
(a) the bankruptcy order against him is annulled; or
(b) he obtains from the court his discharge with a certificate to the effect that his bankruptcy was caused by misfortune without any misconduct on his part.
(3) The court may grant or withhold such certificate as it thinks fit, but any refusal of such certificate shall be subject to appeal.
Vacating offices by bankruptcy
If a person is adjudged bankrupt whilst holding the office of a Sessions Court Judge, Magistrate, or a Councillor of a local authority, his office shall thereupon become vacant.
Undischarged Bankrupt
Duties and disabilities of bankrupt
(1) Where a bankrupt has not obtained his discharge—
(a) the bankrupt shall be incompetent to maintain any action (other than an action for damages in respect of an injury to his person) without the previous sanction of the Director General of Insolvency;
(b) the bankrupt shall once in every six months render to the Director General of Insolvency an account of all moneys and property which have come to his hands for his own use during the preceding six months, and shall pay and make over to the Director General of Insolvency so much of the same moneys and property as have not been expended in the necessary expenses of maintenance of himself and his family;
(ba) notwithstanding paragraph (b), the bankrupt shall immediately report to the Director General of Insolvency the receipt of any moneys, property or proceeds in any form from property the value of which exceeds five hundred ringgit and which moneys, property or proceeds do not form part of his usual income and the bankrupt shall, as soon as may be required by the Director General of Insolvency, pay or make over such moneys, property or proceeds to the Director General of Insolvency;
(bb) the bankrupt shall immediately inform the Director General of Insolvency if there is any change of his home address;
(c) the bankrupt shall not leave Malaysia without the previous permission of the Director General of Insolvency or of the court;
(d) the bankrupt shall not, except with the previous permission of the Director General of Insolvency or of the court, enter into or carry on any business either alone or in partnership, or become a director of any company or otherwise directly or indirectly take part in the management of any company;
(e) the bankrupt shall not, except with the previous permission of the Director General of Insolvency or of the court, engage in the management or control of any business carried on by or on behalf of, or be in the
employment of, any of the following persons, namely—
(i) his spouse;
(ii) a lineal ancestor or a lineal descendant of his or a spouse of such ancestor or descendant; or
(iii) a sibling of his or a spouse of such sibling.
(1A) In granting permission under paragraph (c), (d) or (e) of subsection (1), the Director General of Insolvency or the court may impose such conditions as he or it may think fit.
(2) A bankrupt who makes default in performing or observing this section or a condition imposed pursuant to subsection (1A) shall be deemed guilty of a contempt of court, and shall be punished accordingly on the application of the Director General of Insolvency.
Power to prevent bankrupt from leaving Malaysia
(1) The Director General of Insolvency may by notice issued to any immigration officer request that a bankrupt be prevented from leaving Malaysia.
(2) Subject to any order issued or made under any written law relating to banishment or immigration, an immigration officer who receives a notice under subsection (1) in respect of any bankrupt shall take or cause to be taken all such measures as may be necessary to give effect to it.
(3) An immigration officer shall be empowered to seize and deliver to the Director General of Insolvency any passport or travel document belonging to any bankrupt who is attempting to leave Malaysia without the previous permission of the Director General of Insolvency.
(4) For the purposes of this section, “immigration officer” means any person appointed under section 3 of the Immigration Act 1959 [Act 155].
List of undischarged bankrupts to be kept
(1) The Director General of Insolvency shall keep and maintain a list of undischarged bankrupts.
(2) The list under subsection (1) shall be available, at all reasonable times, for inspection by any member of the public at any office of the Director General of Insolvency.
(3) The name of a deceased bankrupt shall be removed from the list five years after the end of the administration of his estate in bankruptcy.
(4) The Director General of Insolvency may issue a copy of the list to any person upon request by that person and upon payment of the prescribed fee.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
