Board of Directors and its primary responsibility
(1) For the purposes of this Act, there shall be a Board of Directors of the Bank, constituted in accordance with paragraph 1 of the First Schedule. (2) The Board shall be responsible for carrying out the functions and powers, and the general administration of the affairs and business, of the Bank.
The First Schedule
(1) The supplementary provisions in the First Schedule shall apply to the Board, the Bank, and the principal officers of the Bank. (2) The Minister may from time to time by order published in the Gazette amend the First Schedule with regard to— (a) the number of members of the Board specified in subparagraph 1(1); (b) the period of appointment of a director specified in subparagraph 2(1); (c) the frequency of meetings of the Board specified in subparagraph 5(2); (d) the number of directors specified in subparagraph 5(3), being the number at whose request a meeting of the Board shall be summoned; (e) the period of notice of meetings of the Board specified in subparagraph 5(4); (f) the quorum for meetings of the Board specified in subparagraph 5(6).
Custody and control of property
The Board shall take such steps as may be necessary to take into its custody or under its control all property, effects, and actionable claims to which the Bank is or appears to be entitled.
Devolution of rights and liabilities
(1) The Board shall for all purposes be deemed to be the Board of Directors of the Bank duly constituted under the *Ordinance and the by-laws of the Bank and shall be entitled to exercise all the powers of the Board of Directors of the Bank, whether such powers are derived from the *Ordinance, the rules made thereunder, or the by-laws of the Bank; and any reference to the Board of Directors of the Bank in any written law or document shall be deemed to be a reference to the Board. (2) Subject to this Act, all powers, rights, privileges, duties, liabilities, and obligation that, immediately before the commencement of this Act, were those of the previous Board shall, as from that commencement, devolve on the Board.
Steps for the efficient management of the Bank
Subject to any directions of the Minister, the Board shall take such steps as may be necessary for the purpose of efficiently managing the business of the Bank.
Submission of particulars by previous directors
(1) The Board may from time to time require any previous director to submit to it, within such time as it may allow, a signed statement of particulars concerning such matters relating to the affairs of the Bank as the Board may specify, including matters relating to— (a) the assets of the Bank; (b) the debts and liabilities of the Bank; (c) the debts and liabilities owing to the Bank; (d) the creditors and debtors of the Bank. (2) Any previous director who, without reasonable excuse— (a) fails, within the time allowed by the Board, to submit to the Board a statement as required by the Board under subsection (1) and signed by him; or (b) in submitting a statement, fails to set out the particulars in the manner specified by the Board or omits certain particulars required by the Board; or (c) submits a statement containing any incorrect or untrue particulars, shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding two thousand ringgit or to imprisonment for a term not exceeding twelve months or to both. *NOTE—The Cooperative Societies Ordinance 1948 has since been revised as the Cooperative Societies Act 1948 [Act 287] and later repealed by the Cooperative Societies Act 1993 [Act 502]– see paragraph 95(1)(a) of Act 502.
Power of the Bank to institute proceedings for damages and recovery of property
(1) The Bank may, if the Board is satisfied that it is necessary in the interest of the Bank or in the public interest so to do, institute such proceedings as it thinks fit for the recovery of damages for any fraud, dishonesty, or other misconduct, in connection with the management of the affairs of the Bank, committed by any person before the commencement of this Act, or for the recovery of any property of the Bank that has been misapplied or wrongfully retained by any person. (2) No director shall be personally liable for any costs or expenses incurred in connection with any proceedings instituted by virtue of this section. (3) Subsection (1) shall be without prejudice to any other right of the Bank to institute proceedings for any purpose.
Termination of service of officers and employees of the Bank
(1) The Board may, if it is satisfied that it is necessary in the interest of the Bank or in the public interest so to do, terminate the services of any officer or employee of the Bank in accordance with the terms and conditions of his contract of service or for any misconduct, in connection with the management of the affairs of the Bank, committed by the officer or employee before the commencement of this Act. (2) Subsection (1) shall be without prejudice to any other right of the Board to terminate the services of the officers and employees of the Bank.
Wilful destruction of, or failure to deliver, books, registers, and documents of the Bank
Any person who wilfully destroys, or fails to deliver to the Board when required by the Board, any book of account, register, or other document in his custody relating to the business of the Bank, or retains without authority any property of the Bank, shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding two thousand ringgit or to imprisonment for a term not exceeding twelve months or to both.
Protection in respect of acts done in pursuance of this Act
No action, suit, prosecution, or other proceeding whatsoever shall lie or be brought or instituted against the Minister, the Minister of Finance, the Government, or any director in respect of any act done or purported to have been done in pursuance or intended pursuance of this Act, the *Ordinance, the rules made thereunder, or the by-laws of the Bank.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Text as at 1 January 2006 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).