Interest Schemes Act 2016 s 42

s 42 Stop order

(1) Where in the opinion of the Registrar— (a) a prospectus or product disclosure statement does not comply with or is not prepared in accordance with any provision of this Act; (b) a prospectus or product disclosure statement contains a statement or information that is false or misleading; (c) a prospectus or product disclosure statement contains a statement or information from which there is a material omission; or (d) the management company has contravened any provision of the Companies Act 2016, the Registrar may, by stop order in writing served on the management company or such other person as the Registrar may determine, direct the management company or such other person not to allot, issue, offer, make an invitation to subscribe for or purchase or sell, further interests to which the prospectus or product disclosure statement relates, as the case requires. (2) Subject to subsections (3) and (4), the Registrar shall not make a stop order under subsection (1) unless the Registrar has given a reasonable opportunity to be heard to any affected person or the management company as to whether a stop order shall be made. (3) If the Registrar considers that by giving an opportunity to be heard would cause a delay that will be prejudicial to the public interest, the Registrar may make an interim stop order without giving the opportunity to be heard. (4) An interim stop order under subsection (3) shall, unless sooner revoked, have effect for sixty days from the date on which it is made or the conclusion of the hearing in subsection (2), whichever date is the later. (5) Where a stop order made under subsection (1) or an interim stop order made under subsection (3) is in force, this Chapter shall apply as if the prospectus or product disclosure statement has not been registered. Stop order 42. (1) Where in the opinion of the Registrar— (a) a prospectus or product disclosure statement does not comply with or is not prepared in accordance with any provision of this Act; (b) a prospectus or product disclosure statement contains a statement or information that is false or misleading; (c) a prospectus or product disclosure statement contains a statement or information from which there is a material omission; or (d) the management company has contravened any provision of the Companies Act 2016, the Registrar may, by stop order in writing served on the management company or such other person as the Registrar may determine, direct the management company or such other person not to allot, issue, offer, make an invitation to subscribe for or purchase or sell, further interests to which the prospectus or product disclosure statement relates, as the case requires. (2) Subject to subsections (3) and (4), the Registrar shall not make a stop order under subsection (1) unless the Registrar has given a reasonable opportunity to be heard to any affected person or the management company as to whether a stop order shall be made. (3) If the Registrar considers that by giving an opportunity to be heard would cause a delay that will be prejudicial to the public interest, the Registrar may make an interim stop order without giving the opportunity to be heard. (4) An interim stop order under subsection (3) shall, unless sooner revoked, have effect for sixty days from the date on which it is made or the conclusion of the hearing in subsection (2), whichever date is the later. (5) Where a stop order made under subsection (1) or an interim stop order made under subsection (3) is in force, this Chapter shall apply as if the prospectus or product disclosure statement has not been registered. (6) An interim stop order made under subsection (3) may be revoked in writing if the Registrar is satisfied that the circumstances that resulted in the making of the stop order no longer exist. (7) Where applications to subscribe for or purchase of interests to which the prospectus or product disclosure statement relates have been made prior to the stop order made under subsection (1)— (a) where the interests have not been issued to the applicant— (i) the application shall be deemed to have been withdrawn and cancelled and the management company or such other person who receives the money shall forthwith refund all moneys received from the applicants without interest or returns; and (ii) if the money is not refunded within fourteen days of the stop order, the management company shall be liable to refund such money with interest at the rate of ten per centum per annum or at such other rate as may be specified by the Registrar from the expiration of fourteen days; or (b) where the interests have been issued to the applicants, the issue of the interests shall be deemed to be void and the management company or such other person shall— (i) forthwith refund without interest all moneys received from the applicant and if any such money is not refunded within fourteen days of the date of service of the stop order, the management company shall be liable to refund such money with interest at the rate of ten per centum per annum or at such other rate as may be specified by the Registrar from the expiration of fourteen days; and (ii) take necessary steps to effect the stop order. (8) A person who contravenes a stop order made under subsection (1) or an interim stop order made under subsection (3) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding one million ringgit or to both.

Malay text (authoritative)

Perintah berhenti

(1) Jika pada pendapat Pendaftar— (a) suatu prospektus atau pernyataan penzahiran produk tidak mematuhi atau tidak disediakan mengikut mana-mana peruntukan Akta ini; (b) suatu prospektus atau pernyataan penzahiran produk yang mengandungi pernyataan atau maklumat palsu atau mengelirukan; (c) suatu prospektus atau pernyataan penzahiran produk yang mengandungi pernyataan atau maklumat yang terdapat peninggalan material; atau (d) syarikat pengurusan itu telah melanggar mana-mana peruntukan Akta Syarikat 2016, Pendaftar boleh, melalui perintah berhenti secara bertulis menyampaikan ke atas syarikat pengurusan itu atau mana-mana orang lain yang ditentukan oleh Pendaftar, mengarahkan syarikat pengurusan itu atau mana-mana orang lain untuk tidak mengumpukkan, mengeluarkan, menawarkan, membuat pelawaan untuk melanggan atau membeli atau menjual, kepentingan selanjutnya yang berhubung dengan prospektus atau pernyataan penzahiran produk itu, mengikut kehendak keadaan. (2) Tertakluk kepada subseksyen (3) dan (4), Pendaftar tidak boleh membuat perintah di bawah subseksyen (1) melainkan jika Pendaftar telah memberikan peluang munasabah untuk didengari kepada manamana orang yang terjejas atau syarikat pengurusan itu sama ada perintah berhenti itu boleh dibuat. (3) Jika Pendaftar berpendapat bahawa dengan memberikan peluang untuk didengari akan menyebabkan kelengahan yang akan menjejaskan kepentingan awam, Pendaftar boleh membuat perintah berhenti interim tanpa memberikan peluang untuk didengari. (4) Perintah berhenti interim di bawah subseksyen (3) hendaklah, melainkan jika dibatalkan terlebih dahulu, mempunyai kuat kuasa selama enam puluh hari dari tarikh perintah berhenti interim itu dibuat atau setelah selesai perbicaraan dalam subseksyen (2), mengikut manamana tarikh yang terkemudian. (5) Jika perintah berhenti yang dibuat di bawah subseksyen (1) atau perintah berhenti interim yang dibuat di bawah subseksyen (3) berkuat kuasa, Bab ini hendaklah terpakai seolah-olah prospektus atau pernyataan penzahiran produk itu tidak didaftarkan. (6) Perintah berhenti interim yang dibuat di bawah subseksyen (3) boleh dibatalkan secara bertulis jika Pendaftar berpuas hati bahawa hal keadaan yang menyebabkan perintah berhenti itu dibuat tidak lagi wujud. (7) Jika permohonan untuk melanggan atau membeli kepentingan yang berhubung dengan prospektus atau pernyataan penzahiran produk itu telah dibuat sebelum perintah berhenti dibuat di bawah subseksyen (1)— (a) jika kepentingan itu belum dikeluarkan kepada pemohon— (i) permohonan itu hendaklah disifatkan telah ditarik balik dan dibatalkan dan syarikat pengurusan atau mana-mana orang lain yang menerima wang hendaklah dengan serta-merta membayar balik semua wang yang diterima daripada pemohon tanpa faedah atau pulangan; dan (ii) jika wang itu tidak dibayar balik dalam masa empat belas hari dari tarikh perintah berhenti, syarikat pengurusan hendaklah bertanggungan untuk membayar balik wang itu dengan faedah pada kadar sepuluh peratus setahun atau pada apaapa kadar lain yang dinyatakan oleh Pendaftar dari tarikh habis tempoh itu; atau (b) jika kepentingan itu telah dikeluarkan kepada pemohon, keluaran kepentingan itu hendaklah disifatkan sebagai terbatal dan syarikat pengurusan atau mana-mana orang lain itu hendaklah— (i) dengan serta-merta membayar balik tanpa faedah semua wang yang diterima daripada pemohon dan jika mana-mana wang sedemikian tidak dibayar balik dalam masa empat belas hari dari tarikh penyampaian perintah berhenti itu, syarikat pengurusan itu hendaklah bertanggungan untuk membayar balik wang itu dengan faedah pada kadar sepuluh peratus setahun atau pada apa-apa kadar lain sebagaimana yang dinyatakan oleh Pendaftar dari tarikh habis tempoh itu; dan (ii) mengambil langkah-langkah yang perlu untuk melaksanakan perintah berhenti itu. (8) Seseorang yang melanggar perintah berhenti yang dibuat di bawah subseksyen (1) atau perintah berhenti interim yang dibuat di bawah subseksyen (3) melakukan suatu kesalahan dan boleh, apabila disabitkan, didenda tidak melebihi satu juta ringgit atau dipenjarakan selama tempoh tidak melebihi tiga tahun atau kedua-duanya.

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Find Act 778 on lom.agc.gov.my ↗

Text as at 1 March 2018 (LOM reprint); amendments made after that date may not be incorporated.

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).

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