Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171

Incorporating all amendments up to 30 September 2011

ACT 171 
LOCAL GOVERNMENT ACT 1976 
(Click here to see Annotated Statutes of this Act)

Part I PRELIMINARY

SECTION

1.Short title, application and commencement

2.Interpretation

Part II ADMINISTRATION OF LOCAL AUTHORITIES

SECTION

3.Declaration and determination of status of local authority areas

4.Change of name and status, and alteration of boundaries

5.Merger of two or more local authorities

6.Succession of rights, liabilities and obligations

7.Extension of this Act to non-local authority areas

8.Administration of local authority areas

9.Power of State Authority to issue directions

10.Councillors

11.Declaration by Councillor before assuming office

12.Councillors exempt from service as assessors or jurors

13.Local authorities to be corporations

14.Common seal

15.Provisions relating to local government elections ceasing to have effect

Part III OFFICERS AND EMPLOYEES OF LOCAL AUTHORITIES

SECTION

16.List of offices

17.Power of local authority to provide for discipline, etc., of its officers

18.Superannuation or Provident Fund

Part IV CONDUCT OF BUSINESS

SECTION

19.Local authority office

20.Ordinary meetings

21.Special meetings

22.Notice of meetings

23.Meetings of local authority to be public

24.Quorum

25.Chairman of meetings

26.Vote of majority decisive

27.Minutes to be kept of all proceedings

28.Appointment of Committees

29.Standing orders for regulating proceedings of local authorities

30.Extraordinary powers in case of emergency

31.Validity of acts of local authority officers

32.Authentication and execution of documents

33.Exemption of Councillors, etc., from personal liability

34.Disability of Councillors for voting on account of interests in contracts, etc.

35.Restriction

36.Contracts

37.Mode of executing contracts exceeding ten thousand ringgit

38.Employees not to be interested in contracts

Part V GENERAL FINANCIAL PROVISIONS

SECTION

39.Revenue of the local authority

40.Local Authority Fund

41.Power of local authority to raise loans

42.Power of local authority to issue mortgages or debenture stock and to make regulations in respect thereof

43.Notice of trust, charge or other interest not receivable

44.Securities to be trust investment

45.Remedies for default

46.Borrowing powers for special purposes

47.Loans by Government

48.Loans to be first charge on revenue and assets

49.Advances by way of overdraft

50.Sinking fund

51.State Authority may give directions as regards sinking fund

52.Renewal and insurance funds

Part VI ACCOUNTS AND AUDIT

SECTION

53.Accounts to be kept

54.Financial year

55.Annual estimates to be passed and approved

56.Supplementary estimates

57.No expenditure to be incurred unless included in the estimates

58.Virement

59.Form of estimates

60.Audit of accounts

61.Power to take evidence

62.Remuneration of auditor

Part VII PUBLIC PLACES

SECTION

63.Control of public place, etc.

64.Power to make new public places, etc., and enlarge them

65.Power temporarily to close public places

66.Power to erect public buildings in open public places

67.Conditions and restrictions in regard to closure of street, etc.

68.Naming of public places, etc.

Part VIII POLLUTION OF STREAMS

SECTION

69.Committing nuisance in streams, etc.

70.Pollution of streams with trade refuse, etc.

71.Local authority may recover for work done

Part IX FOOD, MARKETS, SANITATION AND NUISANCES

SECTION

72.Powers

73.By-laws

74.Filthy house, etc.

75.Power to enter and cleanse houses or buildings

76.Destruction of rats and mice

77.Closing and demolition, etc., of insanitary dwellings

78.Overcrowding of houses

79.When house to be deemed "overcrowded"

80.Nuisances to be abated

81.Nuisances liable to be dealt with summarily under this Act

82.Notice requiring abatement of nuisance

83.Order for demolition of house unfit for habitation

84.Power to proceed where cause of nuisance arises outside local authority area

Part X FIRE SERVICES

SECTION

85.Omitted or Deleted Section

Part XI BURIAL PLACES, CREMATORIA AND EXHUMATION

SECTION

94.Local authority may provide burial grounds and crematoria and issue licences for the same

95.Penalty for unlawful burials

96.Power to close burial grounds and crematoria

97.Exhumation of corpses

98.Power to make by-laws

99.Keeping of registers

100.Non-application of other written laws

Part XII FURTHER POWERS OF LOCAL AUTHORITY

SECTION

101.Further powers of local authority

Part XIII BY-LAWS

SECTION

102.General power to make by-laws

102a.By-law, etc., may prescribe fees and charges

103.By-laws to be confirmed by State Authority

104.Penalties for breaches of by-laws

105.Power to demand monetary deposits from applicants for permits

106.Publication of by-law, rule or regulation in the Gazette constitutes notice

Part XIV MISCELLANEOUS

SECTION

107.Licences

108.Notices, etc.

109.Default in compliance with notice or order

110.Power to enter premises

111.Officer may demand names and addresses

112.Penalty for obstructing Councillor and others

113.Recovery of expenses

114.Expenses and costs payable by owners

115.Recovery of expenses or costs from persons in default

116.Recovery of charges for local authority services

117.Recovery by instalments

118.Compensation, damages and costs to be determined by courts of competent jurisdiction

119.General penalty

120.Local authority may direct prosecution

121.Power of arrest

122.Books of local authority to be prima facie evidence of sums due

123.Liability for acts and omissions

124.Public Authorities Protection Act 1948

125.Protection of Councillors, officers and employees from personal liability

126.Officers to be public servants

Part XV RATING AND VALUATION

SECTION

127.Power to impose rates

128.Further rates

129.Division of area and holding for rating purposes

130.Basis of assessment of rate

131.Omitted or Deleted Section

132.Drainage rate

133.Duration of rate

134.Exemption from rates

135.Exemption or reduction of rate

136.Minimum rate payable

137.Preparation of Valuation List

138.Designation if name of owner unknown

139.Joint or separate valuation

140.Returns may be required

141.Notice of new Valuation List to be published

142.Objections

143.Confirmation of new Valuation List

144.Amendments to Valuation List

145.Appeals

146.Rates to be first charge

147.Proceedings in default

148.Proceedings for recovery of an arrear

149.Sale of property attached

150.Application of proceeds of sale

151.Attachment and sale of holding

152.Recovery of costs

153.Power to stop sale

154.Objection to attachment

155.Recovery of rates paid by occupier

156.Arrear may be sued as debt

157.Evidence of rates

158.Assessment, etc., not to be impeached for want of form

159.Liability of owner on subdivision or amalgamation of holdings

160.Notice of transfer of rateable holdings

161.Notice of new buildings

162.Refund on unoccupied buildings

163.Provision for rating buildings on State or reserved land

164.Saving

Part XVI SPECIAL PROVISIONS

SECTION

165.Transfers of functions

166.Repeal

First Schedule

Second Schedule

An Act to revise and consolidate the laws relating to local government.

[See Appendix]

Whereas it is expedient for the purpose only of ensuring uniformity of law and policy to make a law with respect to local government:

Now, Therefore, pursuant to the provisions of Clause (4) of Article 76 of the Constitution BE IT ENACTED, by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows:

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/1.Short title, application and commencement

Part I PRELIMINARY

1. Short title, application and commencement

(1) This Act may be cited as the Local Government Act 1976, and shall apply only to West Malaysia^*.

(2) This Act shall come into force in a State on such date as the State Authority may, after consultation with the Minister, appoint in relation to that State by a notification in the Gazette and the State Authority may, after consultation with the Minister, appoint different dates for the coming into force of different provisions of this Act and may bring all or any of the provisions thereof into force either in the whole State or in such part or parts of the State as may be specified in the notification.

(3) Notwithstanding the provisions of subsection (2), in relation to the Federal Territory, this Act shall come into force on such date as the Minister may, by notification in the Gazette, appoint.

(4) The State Authority may, notwithstanding the provisions of subsection (2) , by notification in the Gazette exempt any area within any local authority area from all or any of the provisions of the Act or from any by-laws.

(5) Where in any notification made under subsection (2)it is specified that part or parts of this Act shall come into operation, the State Authority may specify in the same notification the provisions of any of those laws referred to in section 166 which shall be repealed.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/2.Interpretation

2. Interpretation

In this Act, unless the context otherwise requires--

"annual value"

means the estimated gross annual rent at which the holding might reasonably be expected to let from year to year the landlord paying the expenses of repair, insurance, maintenance or upkeep and all public rates and taxes:

Provided that--

"building"

includes any house, hut, shed or roofed enclosure, whether used for the purpose of human habitation or otherwise, and also any wall, fence, platform, underground tank, staging, gate, post, pillar, paling, frame, hoarding, slip, dock, wharf, pier, jetty, landing-stage, swimming pool, bridge, railway lines, transmission lines, cables, redifussion lines, overhead or underground pipelines, or any other structure, support or foundation;

"by-laws"

in relation to any local authority means any by-laws made by the local authority under any power in that behalf conferred upon such local authority by any of the provisions of this Act or in force by virtue of the provisions of this Act;

"City Council"

means the Council of any Municipality which has been conferred the status of a City;

"Councillor"

in relation to any local authority means any person appointed under this Act to serve on the local authority and includes the Mayor or President thereof;

"documents of title"

means grants, leases of State land, certificates of title, qualified titles, entries in the Mukim register, mining leases or mining certificates and other documents evidencing title or registration of land kept by a Register of Titles or a Collector of Land Revenue;

"Health Officer"

means the officer for the time being perfoming the duties of a Health Officer to a local authority and includes an Assistant Health Officer;

"holding"

means any land, with or without buildings thereon, which is held under a separate document of title and in the case of subdivided buildings, the common property and any parcel thereof and, in the case of Penang and Malacca, "holding" includes messuages, buildings easements and hereditaments of any tenure, whether open or enclosed, whether built on or not, whether public or private, and whether maintained or not under statutory authority;

"improved value"

of holding means the price that an owner willing, and not obliged to sell might reasonably expect to obtain from a willing purchaser with whom he was bargaining, for sale and purchase of the holding;

"improvements"

in relation to a holding means all work done or material used at any time on or for the benefit of the holding by the expenditure of capital or labour by the owner or occupier thereof in so far as the effect of the work done or material used is to increase the value of the holding;

"land"

includes things attached to the earth or permanently fastened to anything attached to the earth;

"local authority"

means any City Council, Municipal Council or District Council, as the case may be, and in relation to the Federal Territory means the Commissioner of the City of Kuala Lumpur appointed under section 3 of the Federal Capital Act 1960 [ Act 190];

"market"

means any public place ordinarily used for sale of animals or of meat, fish, fruit, vegetables or other perishable articles of food for human consumption and for sale of any clothing or other merchandise and includes all land and premises in any way used in conjunction or in connection therewith or appurtenant thereto;

"Mayor"

means the person for the time being lawfully performing the duties of the office of Mayor of a City Council and includes the Deputy Mayor;

"nuisance"

means any act, omission or thing occasioning or likely to occasion injury, annoyance, offence, harm, danger or damage to the sense of sight, smell or hearing or which is or is likely to be injurious or dangerous to health or property or which affects the safety or the rights of the inhabitants at large;

"occupier"

means the person in occupation of the premises in respect of which the word is used or having the charge, management or control thereof either on his own account or as agent of another person but does not include a lodger;

"owner"

--

(a) in relation to any land or building, means the registered proprietor of the land and, if in the opinion of the local authority the registered proprietor of the land cannot be traced, the person for the time being receiving the rent of the premises in connection with which the word is used whether on his own account or as agent or trustee for any other person or as receiver or who would receive the same if such premises were let to a tenant; and 

(b) in the case of subdivided buildings, includes the management corporation and any subsidiary proprietor; 

"President"

means the person for the time being lawfully performing the duties of the office of President of a Municipal Council or District Council and includes the Deputy President;

"public place"

means any open space, parking place, garden, recreation and pleasure ground or square, whether enclosed or not, set apart or appropriated for the use of the public or to which the public shall at any time have access;

"rateable holding"

means a holding which is subject to the payment of a rate made and levied under this Act;

"Secretary"

means the Chief Administrative Officer appointed by the State Authority or any officer for the time being lawfully performing the duties of Chief Administrative Officer;

"sewage"

has the same meaning assigned to it under the Sewerage Services Act 1993 [Act 508];

"sky-sign"

means any erection consisting of a frame, hoarding, board, bar, pillar, post, wire or any combination of such things, or any erection of a like nature, or any visible object which floats or is kept in position by wire or other flexible attachment, displayed for the purposes of trade or professional advertisement, in such a position as to be conspicuously visible against the sky from any street or public place;

"State Authority"

means,--

(a) in relation to the States of West Malaysia, the Ruler- in-Council or Governor-in-Council of a State and includes in Negeri Sembilan the Yang di-Pertuan Besar acting on behalf of himself and the Ruling Chiefs; and 

(b) in relation to the Federal Territory, the Minister charged with the responsibility for local government; 

"street"

includes any road, square, footway, passage or service road, whether a thoroughfare or not, over which the public have a right of way, and also the way over any bridge, and also includes any road, footway or passage, open court or open alley, used or intended to be used as a means of access to two or more holdings whether the public have a right of way over it or not, and all channels, drains and ditches at the side of any street shall be deemed to be part of such street;

"temporary building"

means a building classified as a temporary building under the building by-laws;

"Valuation Officer"

means any Valuation Officer appointed by the local authority;

"Valuation List"

means a valuation list prepared under this Act.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/3.Declaration and determination of status of local authority areas

Part II ADMINISTRATION OF LOCAL AUTHORITIES

3. Declaration and determination of status of local authority areas

For the administration of local government under this Act, the State Authority, in consultation with the Minister and the Secretary of the Election Commission, may by notification in the Gazette--

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/4.Change of name and status, and alteration of boundaries

4. Change of name and status, and alteration of boundaries

(1) The State Authority, in consultation with the local authority, may by notification in the Gazette change the name of any local authority area.

(2) The State Authority, in consultation with the Minister and the local authority, may by notification in the Gazette change the status of a local authority area.

(3) The State Authority, in consultation with the Minister and the Secretary of the Election Commission, may by notification in the Gazette alter the boundaries of any local authority area.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/5.Merger of two or more local authorities

5. Merger of two or more local authorities

(1) The State Authority may by order published in the Gazette declare that with effect from such date as may be specified in the order two or more local authorities mentioned in the order shall be merged and the local authorities so merged shall thenceforth be referred to as one local authority to be known by such name as may be designated, and shall be administered by a local authority as may be specified, in the said order.

(2) Before making an order under subsection (1)the State Authority shall consult the Minister and the Secretary of the Election Commission.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/6.Succession of rights, liabilities and obligations

6. Succession of rights, liabilities and obligations

All rights, liabilities and obligations relating to any matter which immediately before the establishment of the local authority under section 3 or merger of the local authorities under section 5 were the responsibility of the Local Council, Town Board, Town Council, District Council, Rural Board, Municipal Council, City Council or Board of Management, as the case may be, shall upon such establishment or merger devolve upon the local authority and in any legal proceedings pending on the date of the establishment or merger there shall be made such substitution of one party for another as may be necessary to take account of any transfer of the rights, liabilities or obligations as aforesaid; and for the removal of any doubt it is hereby declared that all officers and servants of the Local Council, Town Board, Town Council, District Council, Rural Board, Municipal Council, City Council or Board of Management, as the case may be, shall upon such establishment or merger become officers and servants of the local authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/7.Extension of this Act to non-local authority areas

7. Extension of this Act to non-local authority areas

(1) The State Authority may from time to time by notification in the Gazette apply, with such modifications as shall seem fit, any of the provisions of this Act or any by-laws to any area situate in the State which is not comprised in whole or in part within any local authority area and thereupon all such provisions and by-laws as are specified in such notification shall, subject to such modifications as aforesaid, come into force within the area to which the same have been applied.

(2) Where under subsection (1)any of the provisions of this Act or any by-laws have been applied to any area, the State Authority may by notification in the Gazetteappoint any person or persons, either by name or office, to exercise and perform within such area all or any of the powers and duties which are by this Act or by any by-laws conferred or imposed on the local authority or on any of its officers.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/8.Administration of local authority areas

8. Administration of local authority areas

The affairs of every local authority area shall be administered by a local authority established by and in accordance with this Act:

Provided that where in the application of this Act to the Federal Territory there is any conflict between the provisions of this Act and the Federal Capital Act 1960, or the regulations made thereunder, the provisions of the Federal Capital Act 1960, shall prevail.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/9.Power of State Authority to issue directions

9. Power of State Authority to issue directions

(1) The State Authority may from time to time give the local authority directions of a general character, and not inconsistent with the provisions of this Act, on the policy to be followed in the exercise of the powers conferred and the duties imposed on the local authority by or under this Act in relation to matters which appear to the State Authority to affect the interests of the local authority area, and the local authority shall as soon as possible give effect to all such directions.

(2) The local authority shall furnish the State Authority with such returns, accounts and other information with respect to the property and activities of the local authority as the State Authority may from time to time require.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/10.Councillors

10. Councillors

(1) The local authority shall consist of--

(2) Councillors of the local authority shall be appointed from amongst persons the majority of whom shall be persons ordinarily resident in the local authority area who in the opinion of the State Authority have wide experience in local government affairs or who have achieved distinction in any profession, commerce or industry, or are otherwise capable of representing the interests of their communities in the local authority area.

(3) The term of office of each Councillor shall not exceed three years.

(4) The seat of a Councillor shall become vacant in the event of his resignation being accepted, if he is disqualified under subsection 34(7)or if his appointment is revoked by the State Authority.

(5) On a vacancy occurring in the seat of a Councillor, the Mayor or President shall immediately notify the State Authority.

(6) A Councillor shall be eligible for reappointment upon the expiry of his term of office.

(7) If the Mayor or President does not agree with the other Councillors as to the exercise of any of his powers or of the powers of the local authority, he shall refer the matter to the Menteri Besar or Chief Minister of the State whose decision thereon shall be final and binding on the local authority.

(8) The Mayor or President may grant leave of absence to the Councillors for such period and upon such terms as the State Authority may determine.

(9) Each Councillor and any person appointed to any committee under section 28shall be paid such salaries or may be paid such allowances as the State Authority may determine.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/11.Declaration by Councillor before assuming office

11. Declaration by Councillor before assuming office

A Councillor shall not act in the office of Councillor unless he has made and subscribed before a local authority a declaration of acceptance of office in Form A of the First Schedulehereto and such declaration shall be free from stamp duty.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/12.Councillors exempt from service as assessors or jurors

12. Councillors exempt from service as assessors or jurors

No Councillor shall be liable to serve as assessor or as juror.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/13.Local authorities to be corporations

13. Local authorities to be corporations

Every local authority shall be a body corporate and shall have perpetual succession and a common seal, which may be altered from time to time, and may sue and be sued, acquire, hold and sell property and generally do and perform such acts and things as bodies corporate may by law do and perform.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/14.Common seal

14. Common seal

(1) The common seal of a local authority shall be in the custody of the Secretary and shall be authenticated by the signature of the Mayor or President, one Councillor and the Secretary.

(2) Such seal shall be officially and judicially noticed.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/15.Provisions relating to local government elections ceasing to have effect

15. Provisions relating to local government elections ceasing to have effect

(1) Notwithstanding anything to the contrary contained in any written law, all provisions relating to local government elections shall cease to have force or effect.

(2) All Councillors holding office immediately before the coming into force of this Act shall forthwith cease to hold office.

(3) For the purpose of this section, "Councillors" means--

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/16.List of offices

Part III OFFICERS AND EMPLOYEES OF LOCAL AUTHORITIES

16. List of offices

(1) The local authority shall, once in every year before or at the time of submission to the State Authority of the Local Authority Budget under section 55, submit to the State Authority for its approval a list of the offices which the local authority thinks necessary for the purpose of this Act with the salaries and allowances, if any, proposed to be attached to such offices respectively.

(2) Such list shall, when approved by the State Authority, continue in force until a new list is approved in like manner.

(3) The local authority may at any time submit to the State Authority for its approval any alterations and additions in and to such list, and such alterations and additions when approved shall have the same force as if they had been included in such list.

(4) The Commissioner of the City of Kuala Lumpur in the case of the Federal Territory, or the Mayor or President or his representative who shall be a Councillor, the Secretary and one other Councillor in the case of other local authorities, may appoint such persons to the offices shown on the list so approved and may reduce in rank or dismiss such persons from office and may appoint others in their stead:

Provided that the reduction in rank or dismissal from office of any Head of Department or his Deputy shall not take effect until such reduction in rank or dismissal has been confirmed by the State Authority:

Provided further that no officer or employee shall be reduced in rank or dismissed without being given a reasonable opportunity of being heard.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/17.Power of local authority to provide for discipline, etc., of its officers

17. Power of local authority to provide for discipline, etc., of its officers

(1) A local authority may, with the approval of the State Authority, from time to time make rules for the purpose of maintaining good conduct and discipline among officers and employees and may impose any punishment upon any such officer or employee who is guilty of misconduct or breach of duty in the exercise of his official functions:

Provided that no punishment shall be imposed on any Head of Department or his Deputy without the prior approval of the State Authority.

(2) The local authority may suspend from duty any officer or employee who is accused of misconduct or breach of duty in the exercise of his official functions, and if such officer or employee while so suspended is removed from office there shall be paid to him in respect of the period of his suspension such portion only of the salary of his office not being less than one-half as the local authority may think fit.

(3) A local authority may, with the approval of the State Authority, from time to time make rules regulating the qualifications, tenure of office, duties and terms and conditions of service, including matters relating to maternity benefits, rest days, hours of work, overtime, holidays, leave, retrenchment and retirement benefits, of its officers and employees.

(4) This section shall have effect notwithstanding the provisions of the Employment Act 1955 [Act 265].

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/18.Superannuation or Provident Fund

18. Superannuation or Provident Fund

(1) A local authority, with the approval of the State Authority, may make rules--

(2) No payments or other allowances on death, superannuation, resignation, retirement or discharge made or granted to persons out of a Superannuation or Provident Fund nor the rights of any contributor acquired thereunder shall be assignable or transferable or liable to be attached, sequestrated or levied upon for or in respect of any debt or claim whatsoever.

(3) Any person may by a memorandum under his hand appoint a nominee or nominees of the moneys payable on his death out of a Superannuation or Provident Fund and may make provision for the appointment of a new nominee or new nominees of such moneys and for the investment thereof.

(4) The receipt of a nominee or nominees duly appointed or, in default of any such appointment, the receipt of the legal personal representative of a deceased person shall be a discharge to the local authority for any moneys payable on his death out of a Superannuation or Provident Fund.

(5) All Superannuation or Provident Funds duly established under the provisions of any written law repealed by this Act shall continue in full force and effect as if they had been established by rules made under this section but without prejudice to any rights accrued or liabilities incurred or to any act or thing done prior to such repeal.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/19.Local authority office

Part IV CONDUCT OF BUSINESS

19. Local authority office

Every local authority shall provide an office within the local authority area for the transaction of business.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/20.Ordinary meetings

20. Ordinary meetings

Every local authority shall hold an ordinary meeting for the despatch of business on such days and at such hours as it may from time to time appoint but not less than once in every month.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/21.Special meetings

21. Special meetings

(1) The Mayor or President may at any time and shall, at the request in writing of not less than one-third of the Councillors, call a special meeting of the local authority, and the day fixed for such meeting shall be within fourteen days of the presentation of such request.

(2) The notice of any special meetings shall specify the object of the meeting, and no other subjects than those specified in the notice shall be discussed at the meeting.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/22.Notice of meetings

22. Notice of meetings

Notice of the time and place of every meeting of the local authority shall be served on every Councillor either personally or by leaving the same at his usual place of residence or at his business address not less than twenty-four hours before the meeting:

Provided that the accidental omission to serve a notice on any Councillor shall not affect the validity of any meeting.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/23.Meetings of local authority to be public

23. Meetings of local authority to be public

All meetings of the local authority shall be open to the public and to representatives of the Press unless the local authority by resolution at the meeting otherwise decides:

Provided that this section shall not apply to any Committee of the local authority unless such Committee by resolution otherwise decides.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/24.Quorum

24. Quorum

(1) The quorum necessary for the transaction of business at a special meeting of the local authority shall be one-half of the full number of its Councillors excluding any vacant seat and where the number of Councillors shall not be divisible by two then one-half of the next lower number.

(2) The quorum necessary for the transaction of business at an ordinary meeting of the local authority shall be one-third of the full number of its Councillors excluding any vacant seat and where the number of Councillors shall not be divisible by three then one-third of the next lower number divisible by three.

(3) If at any special or ordinary meeting of the local authority a quorum is not present, the meeting shall stand adjourned to such other day as the Mayor or President fixes, and the business which would have been brought before the original meeting, if there had been a quorum present, shall be brought before and transacted at the adjourned meeting whether there is a quorum thereat or not.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/25.Chairman of meetings

25. Chairman of meetings

(1) At every meeting of the local authority the Mayor or President or in his absence the Deputy Mayor or Deputy President if present shall preside as Chairman.

(2) If the Mayor or President and Deputy Mayor or Deputy President are absent from the meeting, the Councillors present shall elect one of their number to be Chairman of the meeting.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/26.Vote of majority decisive

26. Vote of majority decisive

(1) Except as otherwise prescribed all questions coming before any meeting of the local authority shall be decided by a majority of the votes of the Councillors present.

(2) In case of an equality of votes the Chairman at the meeting shall have a second or casting vote.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/27.Minutes to be kept of all proceedings

27. Minutes to be kept of all proceedings

(1) Every local authority shall cause to be duly made from time to time minutes of all proceedings of the local authority and of every Committee appointed by it, including the names of the Councillors present, and the names of all Councillors voting on any question for the decision of which a division is called.

(2) All minutes shall be confirmed and signed by the Chairman of the meeting.

(3) The minutes of all proceedings of the local authority shall be kept at the office of the local authority and shall at all reasonable times be open to the inspection of any Councillor or rate-payer of the local authority area and of any officer of the Government of the Federation or of the State in which such local authority area is situate, any of whom may at all reasonable times make a copy of any part thereof without fee:

Provided that the minutes of the proceedings of any Committee shall not be open to inspection by a rate-payer unless the local authority otherwise directs.

(4) The minutes of proceedings at a meeting of the local authority or of a Committee duly signed by the Chairman of the meeting at which the minutes are signed shall be received in evidence without further proof and, subject to all just exceptions, shall be evidence of the matters stated therein.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/28.Appointment of Committees

28. Appointment of Committees

Every local authority may from time to time appoint Committees, either of a general or special nature, consisting of a Chairman and such number of Councillors and such other persons as the local authority may think fit, for the purpose of examining and reporting upon any matter or performing any act which in the opinion of the local authority would be more conveniently performed by means of a Committee, and may delegate to any Committee such powers, other than the power to raise money by rates or loans, as it may think fit, and may fix the quorum of any such Committee.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/29.Standing orders for regulating proceedings of local authorities

29. Standing orders for regulating proceedings of local authorities

Every local authority may, subject to the provisions of this Act, from time to time make standing orders for regulating its proceedings and those of any Committee thereof, for preserving order at its meetings or at the meetings of any Committee thereof and for regulating the duties of Councillors and the transaction of its affairs.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/30.Extraordinary powers in case of emergency

30. Extraordinary powers in case of emergency

The Commissioner of the City of Kuala Lumpur, Mayor or President, as the case may be, may direct the immediate execution of any work or the doing of any act for safety of life or property and may direct that the expenses thereof be paid out of the Local Authority Fund and shall report the same at the next meeting of the local authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/31.Validity of acts of local authority officers

31. Validity of acts of local authority officers

(1) All acts of the local authority or of any person acting as Mayor or President, Councillor, Secretary or any other officer of the local authority shall, notwithstanding that it be discovered that there was some defect in the appointment of any such person or that he was disqualified, be valid and effectual as if such person had been duly appointed and qualified.

(2) Nothing done under this Act shall be invalid by reason only that the number of Councillors in a local authority is less than the number prescribed.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/32.Authentication and execution of documents

32. Authentication and execution of documents

Every notice, order, warrant, licence, receipt or other similar document issued or requiring authentication by a local authority shall be deemed to be sufficiently authenticated without the common seal of the local authority if signed by the Commissioner of the City of Kuala Lumpur, Mayor or President, Secretary or by any other officer of the local authority duly authorized thereto by the Commissioner of the City of Kuala Lumpur, Mayor or President, as the case may be, or by any standing order or by-law of the local authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/33.Exemption of Councillors, etc., from personal liability

33. Exemption of Councillors, etc., from personal liability

No matter or thing done or omitted and no contract entered into by the local authority, and no matter or thing done or omitted by the Mayor or President, Councillor, officer or employee of the local authority or other person acting under the direction of the local authority, shall, if the matter or thing was done or omitted or the contract was entered into in good faith for the purposes of this Act or of any by-law in force in the local authority area, subject any such person or persons personally or jointly to action, liability, claim or demand whatsoever; and any expenses incurred by the local authority or any such person shall be paid by the local authority out of the Local Authority Fund.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/34.Disability of Councillors for voting on account of interests in contracts, etc.

34. Disability of Councillors for voting on account of interests in contracts, etc.

(1) If a Councillor has any pecuniary interest, direct or indirect, in any contract or proposed contract or other matter, and is present at a meeting of the local authority or of any Committee thereof at which the contract or other matter is the subject of consideration, he shall, as soon as possible after the commencement thereof, disclose the fact, and shall withdraw from the meeting while the contract or matter is under consideration:

Provided that this section shall not apply to an interest in a contract or other matter which a Councillor may have as a rate-payer or inhabitant of the local authority area, or as an ordinary consumer of water, gas, electricity or other local authority services or to an interest in any matter relating to the terms on which the right to participate in any local authority service, including the supply of goods, is offered to the public.

(2) For the purposes of this section a Councillor shall be treated as having indirectly a pecuniary interest in a contract or other matter, if--

Provided that this subsection shall not apply to membership of, or employment under, any public body.

(3) In the case of married persons the interest of one spouse shall, if known to the other, be deemed for the purpose of this section to be also an interest of that other spouse.

(4) A general notice given in writing to the Secretary by a Councillor to the effect that he or his spouse is a member or is in the employment of a specified company or other body, or that he or his spouse is a partner or in the employment of a specified person, shall, unless the notice is withdrawn, be deemed to be a sufficient disclosure of his interest in any contract, proposed contract, or other matter relating to that company or other body or to that person which may be the subject of consideration after the date of the notice.

(5) The Secretary shall record in a book to be kept for the purpose particulars of any disclosure made under subsection (1)and of any notice given under subsection(4) , and the book shall be open at all reasonable hours to the inspection of any Councillor.

(6) If any Councillor fails to comply with the provisions of subsection (1) , he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand ringgit or to a term of imprisonment not exceeding one year or to both and in addition the Court shall make an order of forfeiture in respect of any profit which have accrued or may accrue to him as a result of such interest.

(7) Any Councillor convicted of an offence under this section shall thereupon become disqualified from continuing to be a Councillor.

(8) Any Councillor disqualified under the provisions of subsection (7) shall not be capable of being appointed a Councillor for any local authority.

(9) A prosecution for an offence under this section shall not be instituted except with the sanction of the Public Prosecutor.

(10) For the purpose of this section "Councillor" includes a person appointed to any Committee of the local authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/35.Restriction

35. Restriction

No Councillor shall by himself or his partner or agent act in any professional capacity for or against the local authority of which he is a Councillor.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/36.Contracts

36. Contracts

(1) A local authority may enter into contracts necessary for the discharge of any of its functions provided that such contracts do not involve any expenditure in that year in excess of the sums provided in the approved annual estimates for the discharge of such functions unless such expenditure in that year authorized under section 56 .

(2) All contracts made by the local authority or by a Committee thereof on behalf of the local authority shall be made in accordance with the standing orders of the local authority and in the case of contracts for the supply of goods or materials or the execution of works the standing orders shall require that--

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/37.Mode of executing contracts exceeding ten thousand ringgit

37. Mode of executing contracts exceeding ten thousand ringgit

Every contract which involves the expenditure by the local authority of more than ten thousand ringgit shall specify--

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/38.Employees not to be interested in contracts

38. Employees not to be interested in contracts

No officer or employee of a local authority shall in any way be concerned or interested in any contract or work made with or executed for the local authority without the prior knowledge and consent of the local authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/39.Revenue of the local authority

Part V GENERAL FINANCIAL PROVISIONS

39. Revenue of the local authority

The revenue of a local authority shall consist of--

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/40.Local Authority Fund

40. Local Authority Fund

(1) All moneys received by the local authority by virtue of this Act or any other written law shall constitute a fund to be called the Local Authority Fund and shall, together with all property which becomes vested in the local authority, be under the direction and control of the local authority.

(2) All moneys received by the local authority in respect of the Local Authority Fund shall be lodged on current or deposit account with one or more banks licensed under the Banking and Financial Institutions Act 1989 [Act 372].

(3) All orders or cheques against the said Fund shall be signed by two officers authorized in writing by the local authority.

(4) Any such moneys may be invested in any securities in which trustees are empowered to invest or in such other manner as authorized by the Minister of Finance.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/41.Power of local authority to raise loans

41. Power of local authority to raise loans

(1) Subject to any other written law, a local authority may, by resolution and with the consent of the State Authority, from time to time raise by way of loans such amounts of money upon such conditions as the State Authority shall approve for any of the following purposes:

Provided that the loan shall not make the total indebtedness of the local authority to exceed five times the annual value as contained in the current Valuation List of the local authority and provided that the period for repayment of such loan shall not exceed sixty years.

(2) Before any such resolution is submitted to the local authority a detailed estimate shall be made of the cost of the proposed project on which the money loaned is to be expended, the annual cost of upkeep of such project, the annual revenue to be derived therefrom, the duration thereof, and the proposed manner of repayment.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/42.Power of local authority to issue mortgages or debenture stock and to make regulations in respect thereof

42. Power of local authority to issue mortgages or debenture stock and to make regulations in respect thereof

(1) The local authority may secure all or any moneys which it is authorized to borrow under section 41by mortgage or charge or by the creation and issue of debenture stock.

(2) The conditions of issue of mortgages, charges and debenture stock shall be--

(3) The local authority shall make in respect of debenture stock issued by it under the provisions of this Act regulations providing for--

(4) All such regulations shall be submitted to the State Authority for approval and shall when so approved be published in the Gazette.

(5) Any register maintained under the provisions of any such regulations shall be evidence of any matters thereby directed or authorized to be inserted therein and, as regards persons entered therein as owners of debenture stock, of the title of each person to such debenture stock.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/43.Notice of trust, charge or other interest not receivable

43. Notice of trust, charge or other interest not receivable

The local authority shall not be affected by notice, whether express, implied or constructive, of any trust, charge or other interest, legal or equitable, whereby any person other than the registered owner or owners for the time being may claim to be interested in or entitled to any security issued by the local authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/44.Securities to be trust investment

44. Securities to be trust investment

(1) A trustee, executor or administrator may, unless forbidden by the will or other instrument under which he acts, invest the trust funds in any security issued by a local authority under this Act or any other written law and may for that purpose call in any trust funds invested in any other securities.

(2) Where any local authority or statutory body is by law authorized or required to invest moneys in the securities of the Government of the Federation, it may invest such moneys in any securities issued by a local authority under this Act or any other written law.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/45.Remedies for default

45. Remedies for default

(1) If at any time any interest due on any loan other than stock borrowed by a local authority under this Act shall remain unpaid by the local authority for three months after demand therefor in writing has been lodged with the local authority by the person entitled thereto or by his duly authorized representative, application may be made by such person or his representative to the High Court for the appointment of a receiver of the property and revenue on which the loan is secured.

(2) On the hearing of such application the Court may make such order and give such directions as under the circumstances shall seem expedient for the raising and payment of the moneys due, and, in particular, the Court may order that a rate or rates of such amount or amounts as it may fix be made and levied upon all rateable property within the local authority area, and such rate so ordered shall have the same incidence as any rate imposed by the local authority and may be enforced in like manner and the proceeds thereof shall be paid into Court or otherwise as the Court shall direct.

(3) If at any time there is default in the repayment of any such loan or of any instalment thereof after a period of thirty days from the date on which such loan or instalment shall have become repayable, the like proceedings may be instituted on the application of the person to whom such repayment shall be due or his duly authorized representative.

(4) The Court, on such application, in addition to any order which it is empowered to make under subsection (2) , may order the sale of any property on which the loan may be secured, subject to the provisions of any written law as regards the alienation of any lands vested in the local authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/46.Borrowing powers for special purposes

46. Borrowing powers for special purposes

(1) In addition to the powers of borrowing conferred upon a local authority by section 41 and subject to any other written law, a local authority may, for the purpose of carrying out any development for residential, commercial and industrial undertakings, raise by way of loan from any person such amounts of money at such rates of interest and upon such conditions as may be agreed upon between the local authority and that person with the approval of the State Authority.

(2) Any loan made to a local authority under the provisions of this section may be secured by a first mortgage or a first charge or by debentures upon the assets, and the revenues derived from the assets, in respect of which the money is borrowed but not upon any other assets or revenue of the local authority.

(3) The provisions of section 45shall not apply to such loan or to any interest due thereon, but the mortgagee, chargee or debenture holder may exercise all such legal and equitable remedies in respect of his mortgage, charge or debentures as may, from time to time, be in force in the State in which the local authority area is situate.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/47.Loans by Government

47. Loans by Government

(1) Subject to any other written law, the Government of the Federation or of any State may, out of its revenue or other moneys as may from time to time be set aside or appropriated for the purpose, grant loans to any local authority at such rates of interest and on such terms and conditions to be observed by the local authority obtaining such loan, in addition to those prescribed by law, as it shall think fit to impose.

(2) Where a local authority is unable to pay any money due in respect of any loan granted under this section, the Government of the Federation or of any State may, at any time after the expiry of sixty days from the date on which such money becomes due and payable, order that a rate or rates of such amounts as it may fix be made and levied upon all rateable property within the local authority area and such rate so ordered shall have the same incidence as any rate imposed by the local authority and may be enforced in like manner and the proceeds thereof shall be paid into the general revenue of the Federation or of the State.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/48.Loans to be first charge on revenue and assets

48. Loans to be first charge on revenue and assets

Every loan granted under sections 41 and 47 shall, subject to any prior charge, be a first charge upon the revenues and assets of the local authority obtaining such loan.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/49.Advances by way of overdraft

49. Advances by way of overdraft

Subject to any other written law, a local authority may from time to time obtain from any bank advances by way of overdraft and any such overdraft shall, unless covered by fixed deposits with the same bank, require the approval of the State Authority:

Provided that all moneys so advanced by the bank and any interest thereon shall constitute a debt due by the local authority and shall be a charge on the property and revenues, present and future, of the local authority, and the provisions of subsection 47(2) shall apply in all respects as if such advances were loans granted under section 47 .

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/50.Sinking fund

50. Sinking fund

The local authority shall establish a sinking fund or funds in respect of any loan raised by or granted to it and shall cause to be paid into such fund or funds such sums in every year to provide for the redemption of the loan or such sums as the State Authority may direct and the local authority shall not appropriate any sum from the sinking fund for any other purpose without the consent of the State Authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/51.State Authority may give directions as regards sinking fund

51. State Authority may give directions as regards sinking fund

The State Authority may in its discretion from time to time give directions to the local authority as to the manner in which the moneys in any such sinking fund shall or may be applied, invested or transferred to any other fund or to the general assets of the local authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/52.Renewal and insurance funds

52. Renewal and insurance funds

A local authority may from time to time provide for the annual setting aside of amounts to create--

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/53.Accounts to be kept

Part VI ACCOUNTS AND AUDIT

53. Accounts to be kept

The local authority shall cause proper books and accounts to be provided and true and regular records to be entered therein of all transactions of the local authority and such books and accounts shall be open at all reasonable times and for reasonable periods to the inspection of any Councillor with the prior consent of the Mayor or President.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/54.Financial year

54. Financial year

(1) For the purposes of this Act the financial year shall be the twelve months ending on and including the thirty-first day of December of each year.

(2) The accounts of the local authority shall, as soon as may be, be balanced for the preceding financial year and an annual statement of account of the Local Authority Fund shall be prepared.

(3) Copies of such annual statement signed by the Commissioner of the City of Kuala Lumpur, Mayor or President, as the case may be, shall be laid before the local authority not later than its first ordinary meeting in the month of May following or at any time thereafter as allowed by the local authority.

(4) Such annual statement shall be prepared in such form and shall contain such information as may be required by the State Authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/55.Annual estimates to be passed and approved

55. Annual estimates to be passed and approved

(1) The local authority shall not later than the tenth day of November of each year pass detailed estimates of the revenue and expenditure of the local authority for the next financial year.

(2) Such estimates shall be in such form as may be required by the State Authority and shall be passed at a special meeting of the local authority.

(3) A copy of the draft estimates shall be delivered to each Councillor not less than seven days before the date fixed for such meeting.

(4) Subject to the provisions of this Act, the local authority may in its discretion pass, modify, reject or add any item in such draft estimates.

(5) After the Budget has been passed by the local authority it shall be forwarded to the State Authority not later than the twentieth day of November and shall be considered by the State Authority not later than the thirty-first day of December of that year and the State Authority may reduce or reject any item of expenditure appearing therein.

(6) The summary of the Budget as approved by the State Authority shall be published in the Gazette and the local authority shall be bound thereby.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/56.Supplementary estimates

56. Supplementary estimates

(1) Where additional financial provision is required in any year the local authority may from time to time pass supplementary estimates showing the sources out of which any additional expenditure incurred by it may be met.

(2) Subject to the provisions of this section, the provisions of section 55 shall apply to any supplementary estimates in like manner as they apply to the annual estimates:

Provided that the supplementary estimates shall be considered by the State Authority not later than six weeks after the date of receipt thereof.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/57.No expenditure to be incurred unless included in the estimates

57. No expenditure to be incurred unless included in the estimates

No local authority shall incur any expenditure which has not been included in the approved estimates except with the sanction of the State Authority.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/58.Virement

58. Virement

The local authority may transfer all or any part of the moneys assigned to one item of annually recurrent expenditure to another item of annually recurrent expenditure appearing under the same head of expenditure in the summary of the Budget as approved and published in the Gazette under subsection 55(6) .

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/59.Form of estimates

59. Form of estimates

The annual and supplementary estimates and the summaries thereof shall be prepared in such form and shall contain such detailed information as the State Authority may require.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/60.Audit of accounts

60. Audit of accounts

(1) The Auditor General or other auditor appointed by the State Authority on the recommendation of the Auditor General shall, throughout the financial year, inspect and examine the accounts of the local authority, and the local authority shall, by the Treasurer or other officer authorized by the local authority, produce and lay before the auditor all books and accounts of the local authority together with all vouchers, papers, contracts and documents relating thereto.

(2) It shall be the duty of the auditor on or before the thirty-first day of October in each year to submit to the local authority in respect of the preceding financial year annual observations on the accounts of the local authority for such year and to certify therein whether or not--

(a) the accounts of the local authority were in order; 

(b) separate accounts of all commercial undertakings had been kept; 

(c) the accounts issued presented a true and fair view of the financial position of the local authority and of the commercial undertakings; 

(d) due provision had been made for redemption and repayment of all moneys borrowed by the local authority; 

(e) the amount set aside for depreciation and renewal of the assets of the local authority were adequate; and 

(f) all the requirements of the auditor had been complied with. 

(3) The auditor in his annual observations may state his opinions upon all questions arising out of the certificate given by him under subsection (2) , and may in such observations draw attention to all cases in which it may appear to him that the provisions of this Act or any other written law have not been carried out or that any acts, matters or things have been performed or carried out without due authority.

(4) The audited accounts together with the auditor's observations thereon shall be laid before the local authority at its next ensuing ordinary meeting and shall be published in the Gazette.

(5) A copy of the statements and accounts shall be forwarded to the State Authority which shall cause it to be laid on the table of the State Legislative Assembly and, in the case of the City of Kuala Lumpur, of the House of Representatives.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/61.Power to take evidence

61. Power to take evidence

(1) For the purpose of any examination under the provisions of this Act an auditor may require by notice in writing to that effect any officer of the local authority or any other person to produce such records, minutes, books and documents in his possession or under his control and to give such information or explanation as may be necessary for the proper performance of his duties under this Act.

(2) Any person who, without reasonable excuse, refuses to produce any record, minute, book or document or to give any information or explanation shall be guilty of an offence and shall on conviction be liable to a fine not exceeding two thousand ringgit or to a term of imprisonment not exceeding one year or to both and to a further fine not exceeding one thousand ringgit for each day during which the offence is continued after conviction.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/62.Remuneration of auditor

62. Remuneration of auditor

The auditor shall be paid by the local authority such remuneration as may be agreed.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/63.Control of public place, etc

Part VII PUBLIC PLACES

63. Control of public place, etc.

A local authority shall have the general control and care of all places within the local authority area which have been or shall be at any time set apart and vested in the local authority for the use of the public or to which the public shall at any time have or have acquired a common right.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/64.Power to make new public places, etc., and enlarge them

64. Power to make new public places, etc., and enlarge them

A local authority may--

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/65.Power temporarily to close public places

65. Power temporarily to close public places

A local authority may temporarily close any public place vested in it or under its control.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/66.Power to erect public buildings in open public places

66. Power to erect public buildings in open public places

A local authority may erect and maintain in any open public place buildings for public purposes and may set apart any such public place or any portion thereof for any purposes which the local authority may from time to time think fit.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/67.Conditions and restrictions in regard to closure of street, etc.

67. Conditions and restrictions in regard to closure of street, etc.

(1) A local authority may permanently close or divert any public street or permanently close any public place or alter the boundaries thereof:

Provided that--

(2) A local authority may, with the consent of the State Authority, permanently close or divert any street not being a public street within the local authority area but in every such case the closure or diversion shall be subject to the provisions of subsection (1) .

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/68.Naming of public places, etc.

68. Naming of public places, etc.

A local authority may, with the approval of the State Authority, determine the name by which any public place or housing estate or housing scheme shall be known and may from time to time alter the name of any public place or housing estate or housing scheme or of any part thereof whether or not such name was applied to such place, estate or scheme before the commencement of this Act.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/69.Committing nuisance in streams, etc.

Part VIII POLLUTION OF STREAMS

69. Committing nuisance in streams, etc.

Any person who commits a nuisance or deposits any filth in or upon the bank of any stream, channel, public drain or other water-course within the local authority area shall be guilty of an offence and shall on conviction be liable to a fine not exceeding two thousand ringgit or to a term of imprisonment not exceeding one year or to both and to a further fine not exceeding five hundred ringgit for each day during which the offence is continued after conviction.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/70.Pollution of streams with trade refuse, etc.

70. Pollution of streams with trade refuse, etc.

Any person who, within or without the limits of a local authority area,--

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/71.Local authority may recover for work done

71. Local authority may recover for work done

(1) Where any expenses are incurred by the local authority in carrying out any work as a result of the offences mentioned in sections 69 and 70 , the local authority shall certify the cost thereof to the defaulting persons and the certificate of the local authority shall be conclusive proof of the sum due.

(2) Such sum shall be deemed to be a debt due to the local authority and may be recovered in the manner provided by this Act for the recovery of unpaid rates.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/72.Powers

Part IX FOOD, MARKETS, SANITATION AND NUISANCES

72. Powers

(1) A local authority shall have power to do all or any of the following things, namely:

(2) For the purposes of sections 72and 73 , effluent shall not include sewage.

Unannotated Statutes of Malaysia - Principal Acts/LOCAL GOVERNMENT ACT 1976 Act 171/LOCAL GOVERNMENT ACT 1976 ACT 171/73.By-laws

73. By-laws

(1) A local authority may from time to time make, amend or revoke by-laws for the better carrying out of the provisions of this Act and in particular--