Vesting
(1) The Minister may, by order published in the Gazette, appoint a vesting date and on that date, all property, rights or liabilities of the Perbadanan Pembangunan Bandar shall by virtue of this Act be transferred to and vested in the successor company without any conveyance, assignment or transfer whatever.
(2) Every property vested by virtue of subsection (1) in the successor company shall be so vested in the company for the like title or interest as the same was vested or held immediately before the vesting date.
(3) Every chose in action vested by virtue of subsection (1) in the successor company may, after the vesting date, be sued on, recovered or enforced by the successor company in its own name and it shall not be necessary for the successor company or the Perbadanan Pembangunan Bandar to give notice to the person bound by the chose in action of the vesting effected by subsection (1).
(4) Every right and liability vested by subsection (1) in the successor company may, on and after the vesting date, be sued on, recovered or enforced by or against the successor company in its own name and it shall not be necessary for the successor company or the Perbadanan Pembangunan Bandar to give notice to the person whose right or liability is affected by the vesting under subsection (1).
(5) Any pending legal proceedings by or against the Perbadanan Pembangunan Bandar which relate to any property, right or liability transferred to and vested in the successor company by virtue of
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subsection (1) may, on and after the vesting date, be continued by or against the successor company.
(6) In the case of rights and liabilities arising under any loans which vest in the successor company on the vesting date, the successor company may enter into such arrangements or agreements over such rights and liabilities with the Government or any third party.
(7) On and after the vesting date, any agreement relating to any property, rights and liabilities transferred to and vested in the successor company under subsection (1) to which the Perbadanan Pembangunan Bandar was a party immediately before the vesting date, whether in writing or not, and whether or not of such a nature that rights and liabilities thereunder could be assigned by the Perbadanan Pembangunan Bandar, shall have effect as if the company had been a party to the agreement.
(8) For the avoidance of doubt, the transfer to and vesting of rights in the successor company under subsection (1) shall not include the transfer and vesting of the right of the Perbadanan Pembangunan Bandar under section 18 of the *Perbadanan Pembangunan Bandar Act 1971.
Initial Government holding in the successor company
(1) As a consequence of the vesting in the successor company of the property, rights and liabilities under section 3, the successor company shall issue such securities of the company as the Minister of Finance may, after consultation with the Minister, from time to time direct, to the Corporation.
(2) Securities required to be issued in pursuance of this section shall—
(a) be issued or allotted at such times and on such terms, as to allotment, as the Minister of Finance may, after
* NOTE—The Perbadanan Pembangunan Bandar Act 1971 [Act 46] has since been repealed by the Perbadanan Pembangunan Bandar (Dissolution) Act 1996 [Act 547]—see section 3 of Act 547.
Perbadanan Pembangunan Bandar (Successor Company)
consultation with the Minister direct;
(b) be of such nominal value as the Minister of Finance may direct; and
(c) be issued as fully paid and treated for the purposes of the *Companies Act 1965 as if they had been paid up by virtue of the payment to the successor company of their nominal value.
(3) The Minister of Finance may, after consultation with the Minister, dispose of any securities issued or of any rights to securities initially allotted to the Corporation in pursuance of this section.
(4) Any dividends or other sums received by the Corporation in right of, on the disposal of or otherwise in connection with, any securities or rights acquired by virtue of this section shall be paid into the Consolidated Fund.
Government investment in securities of the successor company
(1) The Minister of Finance may, after consultation with the Minister, at any time, acquire⎯
(a) securities of the successor company or of any subsidiary of the successor company; or
(b) rights to subscribe for any such securities.
(2) The Minister of Finance may, after consultation with the Minister, dispose of any securities or rights acquired under this section.
(3) Any expenses incurred by the Corporation in consequence of the provisions of this section shall be treated as investments and be authorized under subparagraph 8(3)(a)(iv) of the Financial Procedure
* NOTE—The Companies Act 1965 [Act 125] has since been repealed by the Companies Act 2016 [Act 777] which comes into operation on 31 January 2017–see subsection 620(1) of Act 777.
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Act 1957 [Act 61].
(4) Any dividends or other sums received by the Corporation in right of, on the disposal of or otherwise in connection with, any securities or rights acquired under this section shall be paid into the Consolidated Fund.
(5) Stamp duty shall not be chargeable in respect of any increase in the capital of the successor company which⎯
(a) is effected by the issue of shares allotted at a time when the successor company was wholly owned by the Government; and
(b) is certified by the Treasury as having been effected by the issue of shares subscribed for by the Minister of Finance under paragraph (1)(a).
Exercise of the Minister of Finance’s functions through nominees
(1) The Minister of Finance may, after consultation with the Minister, appoint such persons as he thinks fit to act as his nominees for the purposes of section 4 or 5 and⎯
(a) securities of the successor company may be assigned under section 4 to any nominee of the Minister of Finance appointed for the purposes of that section or to any person entitled to require the issue of the securities following their initial allotment to any such nominee; and
(b) any such nominee appointed for the purposes of section 5 may acquire securities or rights in accordance with that section.
(2) Any person holding any securities or rights as a nominee of the Minister of Finance by virtue of subsection (1) shall hold and deal with them on such terms and in such manner as the Minister of Finance may direct.
Perbadanan Pembangunan Bandar (Successor Company)
Financial structure of the successor company
(1) If the Minister of Finance, after consultation with the Minister, so directs, at any time before the successor company ceases to be wholly owned by the Government, such sum as may be specified in the direction but not exceeding the accumulated realized profits of the Perbadanan Pembangunan Bandar, shall be carried by the company to a reserve, which in this section is referred to as “the statutory reserve”.
(2) The statutory reserve may only be applied by the successor company in paying up unissued shares of the company to be allotted to members of the successor company as fully-paid bonus shares.
(3) For the purposes of any statutory accounts of the successor company, the value of any asset or right or the amount of any liability of the Perbadanan Pembangunan Bandar, taken to have been vested in the successor company by virtue of section 3 shall be taken to be the value or, as the case may be, the amount assigned to the asset, right or liability in the statement of accounts prepared by the Perbadanan Pembangunan Bandar, in respect of the last complete accounting year of the Perbadanan Pembangunan Bandar, ending before the vesting date.
(4) For the purposes of any statutory accounts of the successor company, the amount to be included in respect of any item shall be determined as if anything done by the Perbadanan Pembangunan Bandar, whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision of reserve, or otherwise, had been done by the successor company.
(5) Without prejudice to the generality of the provision of subsection (4), the amount to be included from time to time in any reserve of the successor company as representing its accumulated realized profits shall be determined as if any profits realized and retained by the Perbadanan Pembangunan Bandar, had been realized and retained by the successor company.
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(6) References in this section to the statutory accounts of the successor company are references to any accounts prepared by the successor company for the purposes of any provision of the *Companies Act 1965.
(7) For the purposes of this section, “complete accounting year” means an accounting year ending on 31 December or a period to be determined by the Minister of Finance.
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).
