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Section 130A. Disqualification of directors of insolvent companies.

(1) Where on an application under this section it appears to the Court -

(a) that a person-

(i) is or has been a director of a company which has at any time gone into liquidation (whether while he was a director or subsequently) and was insolvent at that time; and

(ii) is or has been a director of such other company which has gone into liquidation within five years of the date on which the first-mentioned company went into liquidation; and

(b) that his conduct as director of any of those companies makes him unfit to be concerned in the management of a company,

the Court may make an order that that person shall not, without the leave of the Court, be a director of or in any way, whether directly or indirectly, be concerned or take part in the management of a company for such period beginning on the date of the order and not exceeding five years as may be specified in the order.

(2) An application under this section shall be made by the Registrar or the Official Receiver.

(3) Where the Registrar or the Official Receiver intends to make an application under this section in respect of any person, he shall give not less than ten days' notice of his intention to that person, and on hearing of the application that person may appear and give evidence or call witnesses.

(4) A person intending to apply for the leave of the Court under subsection (1) shall give to the Registrar not less than ten days' notice of his intention so to apply and the Registrar shall be made a party to the proceedings.

(5) On the hearing of any application under subsection (4) the Registrar may oppose the granting of the application.

(6) If any person acts in contravention of an order made under subsection (1), he shall be guilty of an offence against this Act.

Penalty: Imprisonment for three years or ten thousand ringgit or both.

(7) The Registrar or the Official Receiver may require the liquidator or former liquidator of any company -

(a) to furnish him with such information with respect to the company's affairs; and

(b) to produce and permit inspection of such books or documents of or relevant to the company,

as the Registrar or the Official Receiver may reasonably require for the purpose of determining whether to make an application under this section in respect of any person who is or has been a director of that company; and if a person makes default in complying with any such requirement, the Court may, on the application of the Registrar or the Official Receiver make an order requiring that person to make good the default within such time as may be specified.

(8) Subsection (6) does not affect the powers of the Court in relation to the punishment of contempt of the Court.

(9) Subsection (1) does not apply unless at least one of the companies therein mentioned has gone into liquidation after the date of coming into operation of this section and the conduct to which regard may be had under paragraph (1)(b) does not include conduct as a director of a company that has gone into liquidation before that date.

(10) For the purposes of this section, a company goes into liquidation -

(a) if it is wound up by the Court on the date of the winding up order; and

(b) if it is wound up voluntarily on the date of passing of the resolution for voluntary winding up.

[Ins. Act A836: s.24]