PROCEDURE, TERMS AND CONDITIONS UNDER WHICH ADVERTISING AGENCIES MAY BE GRANTED ACCREDITATION BY THE ADVERTISING DIVISION OF THE MINISTRY OF INFORMATION, MALAYSIA
1. Any person wishing to deal with the Advertising Division of the Ministry of Information as an agency acting on behalf of an advertiser shall make a written application, in the form prescribed, for accreditation under these terms and conditions.
2. The applicant shall submit to the Head of Advertising Division:
(a) evidence that the applicant is or proposes to be in business as an agency acting for advertisers, is of good repute, and is experienced in the functions required of an advertising agency in relation to advertising;
(b) evidence that the applicant is properly equipped for such business, has a fixed office or place of business, and is in a position to place with the Advertising Division contracts for broadcasting of a total value sufficient, in the opinion of the Head of the Advertising Division, to warrant the issue of a Certificate of Accreditation;
(c) evidence that the applicant has financial resources sufficient to enable it to guarantee payments of accounts of its advertiser clients;
(d) evidence that the applicant is independent of any financial control by or arrangement with any advertiser whereby the latter obtains any interest in the commissions paid to the applicant.
3. The Head of the Advertising Division may at his discretion request for any such further information as it considers desirable for the purpose of enabling it to decide whether or not the application for accreditation should be granted.
4. The application may be granted, refused or granted upon certain conditions, at the discretion of the Head of the Advertising Division, provided that an appeal against such refusal may be made by the applicant to the Minister, whose decision shall be final.
5. Upon the approval of an application by the Head of Advertising Division, a Certificate of Accreditation shall be issued to the applicant.
6. Such accreditation and the issuance of the Certificate of Accreditation shall not confer upon the accredited agency any authority to contract or to act for or on behalf of the Ministry of Information or the Department of Broadcasting or the Advertising Division either as their agent or in any other capacity.
7. The Certificate of Accreditation shall be in the form prescribed in Part B of the Third Schedule and shall have a currency of one year from the first day of January in each year until the thirty-first day of December following the issue of the Certificate of Accreditation, or until such accreditation is renounced or revoked as hereinafter provided.
8. An accreditation may be revoked and the Certificate of Accreditation cancelled by the Head of the Advertising Division at his discretion provided that an appeal against such revocation and cancellation may be made by the agency so affected, to the Minister, whose decision shall be final.
9. Where a Certificate of Accreditation is revoked or cancelled, the agency shall surrender such certificate to the Advertising Division.
10. An accredited agency desiring renewal of accreditation shall, on or before the first day of December prior to the expiration of such Certificate of Accreditation apply to the Head of Advertising Division for accreditation and renewal of such Certificate of Accreditation for a further term of one year and shall, if required by the ficate of Accreditation for a further term of one year and shall, if required by the Head of the Advertising Division, support the application for renewal with evidence that the circumstances under which the original application was granted have not changed to render the accredited agency less desirable to the Advertising Division and such renewal may be granted or refused at the discretion of the Head of the Advertising Division and with or without conditions, provided that an appeal against a refusal may be made by an agency so affected to the Minister, whose decision shall be final.
11. Every accredited agency shall, whenever call upon to do so, produce to the Advertising Division written evidence of its authority to act for an advertiser and evidence of the extent of such authority either formal or informal and upon any change in the contractual relationship between itself and its client, give to the Advertising Division due written notice of such revocation or change. Notwithstanding such written authority, the accredited agency, unless it has signed on behalf of the advertiser the form of contract requesting the Advertising Division to broadcast any commercial, shall countersign such form of contract and unless and until the form of contract is so countersigned, no obligation shall rest upon the Advertising Division to recognise such accredited agency as the agent of the advertiser in respect of such form of contract. The accredited agency shall be directly responsible for contracts purported to be signed or countersigned by it as agent for the advertiser.
12. Every accredited agency shall:
(a) observe the terms and conditions upon which any commercial is received by the Advertising Division and broadcast by the Department of Broadcasting;
(b) ensure that such terms and conditions are brought to the notice of its advertiser clients;
(c) do everything in its power to secure the ready observance and performance of such terms and conditions as may be required of its advertiser clients; and
(d) do everything in its power to serve its advertiser clients faithfully and well with respect of the contracts for broadcasting and to facilitate the successful compilation and broadcast of advertising and programme material.
13. No accredited agency shall pay or allow any discount or abatement or any fee, bonus or reward to any advertiser or employee of an advertiser.
14. No accredited agency shall sub-let or resell any broadcasting time which is the subject of a contract between itself and the Government.
15. In consideration for obtaining and placing with the Advertising Division the advertising business of its clients, acting as advertising counsel to such clients, and satisfactorily and fully carrying out its functions, facilitating the successful compilation and broadcast of advertising and programme material, measuring the effectiveness of the campaign, adjusting, augmenting and improving its content, analysing and evaluating its results, attending to such administration details arising out of the contracts as may be required and generally acting as intermediary between its clients and the Advertising Division, an accredited agency shall be allowed by the Head of the Advertising Division, a commission amounting to fifteen percent of the value of broadcast executed under contracts placed in the name of such advertiser clients and for which payment (after deduction of commission) has actually been received by the Advertising Division; provided however, the agency shall not be entitled to any commission in respect of any charge imposed thereof.
16. Where the accredited agency does not itself carry on business in Malaysia, the commission to be allowed to such accredited agency in accordance with paragraph 15 shall be seven and a half percent of the value of broadcast executed and for which payment (after deduction of commission) has actually been received by the Advertising Division.
17. Where the accreditation of an agency is revoked pursuant to paragraph 8, payment of the commission under paragraph 15 shall cease as from the date of revocation, provided however, that in the case of any appeal against such revocation being made by the agency and allowed by the Minister, then the said commission shall be allowed and paid as provided in paragraph 15.
18. Where an advertiser notifies in writing the Advertising Division of his intention to transfer his business from one accredited agency to another accredited agency and such transfer is carried out in accordance with the terms and conditions upon which commercial is received by the Advertising Division and broadcast by the Department of Broadcasting then the commission under paragraph 15 shall be paid to the first accredited agency only in respect of the value of such broadcasts as are actually executed prior to the transfer of such business and shall be paid to the second accredited agency only in respect of the value of such broadcasts as are actually executed subsequent to the said transfer.
19. Should any accredited agency reconstruct its business or effect any alteration or change in its ownership or, in the case of a company, have any substantial change in the ownership of shares, it shall give the Advertising Division immediate written notice of such reconstruction, alteration or change and its accreditation may thereupon be reviewed by the Head of the Advertising Division and may be revoked by him at his discretion provided that an appeal against such revocation may be made by the agency to the Minister, whose decision shall be final.
20. The rate of commission to be allowed to accredited agencies under paragraph 15 or 16 may be amended or varied at any time, in which event the agencies shall be given at least three months prior notice of the intention to do so, and any such amendment or variation shall apply to contracts in course of performance at the date of expiry of such notice and to contracts accepted after the date of such notice.
