Full immunity for Malaysia Airlines administrator


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(The Star) – The administrator of Malaysia Airlines (MAS) will have full immunity when exercising its power in running the operations of the national carrier.

This is one of the many clauses under the MAS administration bill that was tabled in Parliament yesterday.

The bill provides special laws for the administrator of MAS to carry out services that are essential for the continuity of the airline, and its uninterrupted connectivity within Malaysia.

This bill was also tabled to make way for the establishment of a new entity – Malaysia Airlines Bhd (MAB), to take over the operations of the national carrier.

On Nov 7, MAS shareholders had given their vote of support for the airlines’ major shareholder Khazanah Nasional Bhd to take the company private at 27 sen per share.

Khazanah’s intention was to take the company private and transfer the entire operations and assets into a new company.

It is looking to re-negotiate MAS’ contracts with the employees and suppliers, as well as reducing the workforce by some 6,000 people. It also plans to set up a new company to take over operations by July 1.

In carrying out the business of MAS, the administrator has been given powers which included appointing new directors, removal or suspension of anyone in the company.

The administrator also has the authority to renegotiate the terms and conditions of any contracts.

The administrator could also employ or terminate employees, and determine the compensation payable to dismissed employees. It can take possession of MAS’ properties, sell or dispose parts of the property by any way it deems fair.

The administrator may raise or borrow money, and grant security over the property of the administered company. It can also grant or accept a surrender of a lease or tenancy of the property of the administered companies..

The administrator may also transfer any property, business, liabilities and affairs of the administered companies to any of MAB’s subsidiary companies.

The administrator may purchase the shares, property and equipment of any company, in which the administered companies are existing shareholders, that supplies goods or services which are essential to ensure the unumterrupted continuation of the business vested in MAB.

With the appointment of the administrator, any transfer, mortgage, execution or obligation incurred by, or against the administered companies, may be avoided or recoverable by the administrator.



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