s 89 Powers of Commission to protect interests of debenture holders
(1) The Commission may, on the application of a trustee under paragraph 82(1)(k) or of its own accord where a trustee fails or refuses to act, issue a written direction to a borrower imposing restrictions on the activities of the borrower as the Commission thinks necessary for the protection of the interests of debenture holders. (2) The Commission shall serve the written direction issued under subsection (1) at the borrower’s registered office in Malaysia. (3) The Commission in issuing a direction under subsection (1) shall first give the borrower an opportunity to be heard in relation to the application. (4) Where a prospectus relating to any debenture contains a statement as to the particular purpose or project for which amounts secured or payable under the debenture are to be applied and— (a) it appears to the Commission that the purpose or project has not been achieved within the time stated in the prospectus or, where no time is stated, within a reasonable time; (b) it is the Commission’s opinion that notice is necessary for the protection of the interests of debenture holders; and (c) the trustee in relation to the debenture has failed or refused to act under paragraph 82(1)(m), the Commission may, upon due inquiry, direct the borrower in writing to repay the amounts secured or payable under the debenture issued by the borrower within one month after the notice is given, unless the Commission is satisfied on any or all of the following: (aa) that the purpose or project has been substantially achieved or completed; or (bb) that the interests of debenture holders have not been materially prejudiced by the failure to achieve or complete the purpose or project within the time stated in the prospectus or within a reasonable time. (5) Where a prospectus relating to any debenture contains a statement as to the particular purpose or project for which the amounts secured or payable under the debenture are to be applied and the Commission becomes aware, by means other than upon notification by a borrower under subsection 77(1), that such amounts are in fact used or intended to be used for a purpose or project not specified in the prospectus, the Commission may, upon due inquiry, direct the borrower in writing to repay such amounts to each person from whom such amounts were received or if the debentures have been issued, to each debenture holder, within one month after the notice is given.