s 113 Action of Commission in respect of licensee in certain circumstances
(1) Where the Commission— (a) has been informed by a licensee of any circumstances referred to in section 112; or (b) is satisfied— (i) that the licence or authorization of a licensee has been revoked and the licensee continues to provide water supply services or sewerage services in contravention of this Act and its subsidiary legislation; (ii) that there has been or is a contravention by the licensee of any direction by the Commission as is serious enough to make it inappropriate for the licensee to continue to hold its licence; (iii) that the licensee is insolvent or has suspended payment to any extent that prejudices its operations or that there are facts or circumstances which is likely to lead to the licensee becoming insolvent or to the licensee suspending payment to any extent that prejudices its operations; or (iv) that the licensee has contravened any provision of this Act or its subsidiary legislation or has contravened any condition of its licence as is serious enough to make it inappropriate for the licensee to continue to hold its licence, the Commission may, by order published in the Gazette, exercise any one or more of the following powers, as it deems necessary: (A) require the licensee to take any step, action or to do or not to do any act or thing in relation to the licensee or its business, directors or officers as may be specified, and within the period set out, by the Commission in the order; (B) notwithstanding anything in any written law or any limitations contained in the constituent documents of the licensee, remove an officer of the licensee from his office with effect from a date as may be set out in the order; (C) notwithstanding anything in any written law or any limitations contained in the constituent documents of the licensee, in particular, a limitation as to the minimum or maximum number of directors— (i) remove any director of the licensee from his office with effect from a date as may be set out in the order; or (ii) appoint one or more persons as a director or directors of the licensee and provide for any of the persons so appointed to be paid by the licensee such remuneration as may be set out in the order; or (D) appoint a person to advise the licensee in relation to the proper conduct of its business and provide for the person so appointed to be paid by the licensee such remuneration as may be set out in the order. (2) The powers of the Commission under paragraphs (1)(B), (C) and (D) shall be exercised only with the prior concurrence of the Minister. (3) If any of the circumstances as set out in paragraphs (1)(a) and (b) exist in respect of a licensee and the Commission is of the opinion that it is necessary in the public interest, the Commission may, whether or not it has exercised any of its powers under paragraph (1)(A), (B), (C) or (D), make a recommendation to the Minister— (a) for the Commission to assume control of the whole of the property, business and affairs of the licensee and carry on the whole of its business and affairs; (b) for the Commission to assume control of such part of the property, business and affairs of the licensee as may be specified by the Commission and carry on such part of the business and affairs; or (c) for the Commission to appoint any person to exercise any of the powers of the Commission under paragraph (a) or (b) on behalf of the Commission; and (d) for the expenses of the Commission, or the remuneration of the person so appointed under paragraph (c), as the case may be, to be payable out of the assets of the licensee in priority to all other claims whether secured or unsecured. (4) If the Minister agrees with the recommendation of the Commission under subsection (3), he shall make an order to be published in the Gazette specifying his decision and the action to be taken by the Commission accordingly. (5) An order of the Commission under subsection (1), or an order of the Minister under subsection (4), may from time to time be amended or replaced by a further order under subsection (1) or (4), as the case may be. (6) No order under subsection (1), (4) or (5) shall be made unless— (a) the licensee in respect of which the order is to be made; and (b) in the case of an order under paragraph (1)(B) or subparagraph (C)(i), the officer or director who is to be removed from office, has been given a reasonable opportunity of making representations against, or otherwise in respect of, the proposed order. (7) Notwithstanding subsection (6), if in the opinion of the Commission— (a) in the case of an order to be made by the Commission under subsection (1) or (5); or (b) in the case of an order to be made by the Minister under subsection (4) or (5), any delay would be detrimental to the interests of the consumers or to the public or to any section of the public, the order may be made first and the opportunity to make representations against or otherwise in relation to the order shall, in such case, be given immediately after the order has been made, and the order may, in consequence of such representations either be confirmed or be amended or replaced under subsection (5), or be revoked under subsection (8). (8) The Commission or the Minister may at any time revoke an order in the same manner as the order was made under subsection (1), (4) or (5), as the case may be. (9) A person who contravenes an order of the Commission under paragraph 113(1)(A), (B), (C) or (D) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.