Open ↗(1) Whenever a change is about to occur in the Information control of any Islamic bank, the bank shall report the in cotroi proposed change to the Central Bank. of Islamic
(2) Whenever a loan or advance is made by any Banking Act 1973 incorporated in Malaysia or of any Act 102 finance company licensed under the Finance Companies Actó Act 1969, the Islamic bank shall report the fact to the Central Bank.
Sanction for recons• truction, etc., of bank required. IPt. IV, S. 21-22)
(3) The reports required to be made under subsection (2) shall contain the following
(i) the names and addresses of the borrowers; (i1) the name of the Islamic bank, the licensed bank, or finance company issuing the shares by which the loan or advance is secured;
(iii) the number of shares by which the loan or advance is secured; and
(iv) the amount of the loan or advance.
(4) The reports under subsections (1) and (2) shall be in addition to any report which may be required pursuant to the provisions of any other written law.
(5) For the purposes of this section, the expression "'ossessio diretay or indire lly or iche pok en to direbe or cause the direction of the management and policy of the bank.
(6) Any Islamic bank which fails to comply with the provisions of subsection (1) or (2) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit.
Open ↗(1) Every Islamic bank shall obtain the approval of the Minister of any proposed-
(a) arrangement or agreement—
(i) for the sale or disposal of its shares or business; of
(ii) affecting voting power, management or other matters, which will result in a change in the control or management of the bank; and
(b) scheme-
(i) for reconstruction of the bank; or
(ii) for amalgamation, merger or otherwis between the bank and any other cor poration, wherein the whole or any part of the underlaking or the property of the bank is to be transferred to another corporation.
: under subine loan or ie. and (2) shall •be required vritten law. ze expression k means the wer to direct it and policy comply with all be guilty e liable to a it. the approval its shares or nagement or he control or nk; or or otherwise y other corif the underank is to be n. [Pt. IV-V, S. 22-24]
(2) The Minister, on the recommendation of the Central Bank, may approve or refuse to allow the proposed arrangement, agreement or scheme, but the approval of the Minister shall not be unreasonably withheld. 13) Subsechan.. L-ins,hn1S5
Open ↗(1) Without prejudice to anything contained in the bin oa ifica- Companies Act 1965, any person who is a director, directors manager, secretary or other officer concerned in the and employees management of an Islamic bank shall cease to hold of banks. office- Act 125.
(a) it he becomes a bankrupt, suspends payment or compounds with his creditors; or
(b) if he is convicted of an offence involving dishonesty or fraud.
(2) No person who has been a director of, or directiy concerned in the management of, an Islamic bank or licensed bank under the Banking Act 1973 which has Act 102. been wound up by a court shall, without the express authority of the Minister, act or continue to act as a director of, or be directly concerned in the management of, any Islamic bank.
(3) Any person who acts in contravention of subsection (1) or (2) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both such fine and imprisonment.
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).
