1 PART I PRELIMINARY-1. Short title and commencement.

This Act may be cited as the Electricity Supply (Successor Company) Act 1990 and shall come into force on such date as the Minister may, by notification in the Gazette, appoint.

2 PART I PRELIMINARY-2. Interpretation.

In this Act, unless the context otherwise requires-

  "Board"  means the National Electricity Board of the States of Malaya established under the Electricity Act 1949;

  "Corporation"  means the Minister of Finance incorporated by the Minister of Finance (Incorporation) Act 1957;

  "Minister"  means the Minister for the time being charged with the responsibility for matters relating to electricity;

  "successor company"  means the company to which all property, rights and liabilities to which the Board was entitled or subject to, are transferred under section 3;

  "transfer date"  means the date on which all property, rights and liabilities to which the Board was entitled or subject to, are transferred to the suc

3 PART II VESTING OF PROPERTY, ETC., IN SUCCESSOR COMPANY-3. Vesting of property, etc , of the Board in the successor company.

(1) The Minister may, by order published in the Gazette, appoint a transfer date and on such date, all property, rights and liabilities to which the Board was entitled or subject to, immediately before that date shall become by virtue of this section property, rights and liabilities of the successor company.

(2) For the avoidance of doubt-

(a) any reference to property to which the Board was entitled to, is a reference to land and choses-in-action of the Board whether situated in Malaysia or elsewhere; and

(b) any reference to rights and liabilities to which the Board was entitled or subject to, is a reference to rights which the Board is entitled to or, as the case may be, liabilities to which the Board is subject to, whether under the laws of Malaysia or any country outside Malaysia and includes rights and liabilities arising under loans raised.

(3) Every chose-in-a

4 PART II VESTING OF PROPERTY, ETC., IN SUCCESSOR COMPANY-4. Initial Government holding in the successor company.

(1) As a consequence of the vesting in the successor company by virtue of section 3 of all property, rights and liabilities to which the Board was entitled or subject to, the successor company shall issue such securities of the company as the Minister of Finance may from time to time direct-

(a) to the Corporation; or

(b) to any person entitled to require the issue of the securities following their initial allotment to the Corporation.

(2) The Minister of Finance shall not give a direction under subsection (1) at a time when the successor company has ceased to be wholly owned by the Government of Malaysia.

(3) Securities required to be issued in pursuance of this section shall be issued or allotted at such time and on such terms, as to allotment, as the Minister of Finance may direct.

(4) Shares issued in pursuance of this section-

(a) sha

5 PART II VESTING OF PROPERTY, ETC., IN SUCCESSOR COMPANY-5. Shares held under section 17(1) of the Electricity Act 1949.

Where immediately before the transfer date any person holds any shares in the Board under section 17(1) of the Electricity Act 1949 all such shares shall as from the transfer date be held by such person in the successor company and the successor company shall issue shares to such person of a value not less than the value of the shares held by such person in the Board immediately before the transfer date.

6 PART II VESTING OF PROPERTY, ETC., IN SUCCESSOR COMPANY-6. Government investment in securities of the successor company.

(1) The Minister of Finance may, 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 dispose of any securities or rights acquired under this section.

(3) Any expenses incurred by the Minister of Finance in consequence of the provisions of this section shall be treated as investments and be authorised under section 8(3) (a) (iv) of the Financial Procedure Act 1957.

(4) Any dividends or other sums received by the Corporation in right of, or on the disposal of, 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 i

7 PART II VESTING OF PROPERTY, ETC., IN SUCCESSOR COMPANY-7. Exercise of the Minister of Finance's functions through nominees.

(1) The Minister of Finance may appoint such persons as he thinks fit to act as his nominees for the purposes of section 4 or 6 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 6 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.

8 PART II VESTING OF PROPERTY, ETC., IN SUCCESSOR COMPANY-8. Financial structure of the successor company.

(1) If the Minister of Finance so directs at any time before the successor company ceases to be wholly owned by the Government such sum, not exceeding the accumulated realised profits of the Board, as may be specified in the direction shall be transferred by the successor 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 company as fully-paid bonus shares.

(3) For the purposes of any statutory accounts of the successor company-

(a) the vesting effected by virtue of section 3 shall be taken to have been a vesting of all property, rights and liabilities to which the Board was entitled or subject to immediately before the end of the last complete accounting year of the Board, ending before the transfer date and to have been effe

9 PART III PROVISIONS RELATING TO STAFF-9. Staff.

(1) The successor company shall accept into its employment on the transfer date every person who immediately before the transfer date is a member of the staff of the Board and who was given an option by the Board and has opted to serve as an employee of such company.

(2) Every such person who opts under subsection (1) to serve as an employee of the successor company shall be employed by such company on terms and conditions of service not less favourable than the terms and conditions of service to which he was entitled to immediately before the transfer date.