The Government has agreed to dissolve the SEB on 31 December 2005 and subsequently terminate the Sabah Electricity Board Act 1983 (Act 278). Based on the Act, the transfer of assets, rights and liabilities of the SEB must be done in stages through the process of a statutory vesting order (SVO).

This process has been implemented in two stages which are SVO 1 involving assets, rights and liabilities with complete documentation, and SVO 2 involving assets, rights and liabilities that have no documents and require document collection work.