Establishment, duties and powers of boards
(1) The State Authority may from time to time by order published in the Gazette establish in and for any area in such State a board by such name as may be specified in the order to carry out in such area any duties of the kind referred to in subsection 3(2) and may in like manner cancel, vary or amend any such order.
(2) A board shall have power, for the purpose of the discharge of its duty under this Act—
(a) to carry on all activities the carrying on whereof appears to it to be requisite, advantageous or convenient for or in connection with the discharge of its said duty;
(b) to promote and co-ordinate the carrying on of any such activities by corporations established by the board and to give assistance to such corporations, including financial assistance, by way of grant loan or otherwise;
(c) to carry on such activities in association with corporations or other boards, bodies or persons (including departments of the Federal Government or of any State Government) or as managing agents or otherwise on their behalf;
(d) to make loans, subject to such conditions as the board may think fit, in accordance with this Act;
(e) to do anything and to enter into any transaction (whether or not involving expenditure, borrowing in accordance with this Act in that behalf, granting of loans or investment of money, the acquisition, use and disposal of any movable or immovable property, including rights) which in its opinion is calculated to facilitate the proper discharge of its functions or is incidental or conducive thereto.
(3) In addition to the duties imposed under this Act, a board may undertake such other functions and administer and expend such other moneys for such purposes as the State Authority may assign to the board and in so doing the board shall be deemed to be fulfilling the purposes of this Act and this Act shall apply to the board in respect of such functions and the administration and expending of such moneys:
Provided always that the accounts of such moneys shall be kept separate and apart from those of the board.
Directions to boards
(1) The State Authority may, after consultation with a board, give to the board directions of a general character and not inconsistent with this Act as to the exercise and performance of its duties and functions and the board shall give effect to all such directions.
(2) The power conferred upon a State Authority by the preceding subsection to give directions to a board shall extend to the giving of directions—
(a) as to the disposal of capital assets; or
(b) as to the application of the proceeds of such disposal,
notwithstanding that the directions may be of a specific character:
Provided that no such direction shall, so long as any sum borrowed by the Board in accordance with this Act remains outstanding, be given except with the concurrence of the Minister of Finance.
(3) Every board shall furnish the State Authority with such returns, accounts and other information with respect to its property and activities as he may from time to time require.
Funds
Establishment of fund
(1) For the purposes of every board there shall be established a fund to be administered and controlled by the board.
(2) The fund shall consist of—
(a) such capital sums as may be provided from time to time for the purposes of the board by the Legislative Assembly;
(b) such capital sums as may from time to time be advanced to the board by the Authority, by way of grant, loan or otherwise out of the Land Development Fund;
(c) sums borrowed by the board for the purpose of meeting any of its obligations or discharging any of its duties;
(d) any property, investments, mortgages, charges or debentures acquired by or vested in the board; and
(e) all other capital assets which may in any manner become payable to or vested in the board in respect of any matter incidental to its powers and duties.
Balancing of revenue accounts
It shall be the duty of a board to conserve the fund established in pursuance of section 32 by so exercising and performing its functions and duties under this Act as to secure that the total revenues of the board are sufficient to meet all sums properly chargeable to their revenue account, including, without prejudice to the generality of that expression, provisions in respect of its obligations under section 34 and depreciation and interest on capital, taking one year with another.
Reserve fund
(1) Every board shall establish a reserve fund.
(2) The management of the reserve fund, the sums to be paid from time to time to the credit thereof and the application thereof shall be as the board may determine:
Provided that no part of the reserve fund shall be applied otherwise than for the purposes of the board.
Powers of expenditure
A board may pay out of the fund established in pursuance of section 32 and from the other resources of the board—
(a) any loan made by the board;
(b) any expenses lawfully incurred by the board including survey, legal and other fees and costs, and the remuneration of any officer or servant appointed and employed by the board, including superannuation, allowances or gratuities;
(c) any other expenses, costs or expenditure properly incurred or accepted by the board in the execution of its duty or the discharge of its functions.
Borrowing powers and gifts
(1) A board may from time to time borrow, at such rate of interest and for such period and upon such terms as to the time and method of repayment and otherwise as the State Authority may approve, any sums required by it for meeting any of its obligations or discharging any of its duties.
(2) A board may accept any gifts made to the board for all or any of the purposes for which the board was established and, subject to the terms of any gift, apply them for this purpose in accordance with this Act.
(3) A board may, with the approval of the State Authority, enter into contracts of guarantee or indemnity for the purpose of facilitating the acquisition or erection of dwelling houses by officers or other servants of the board.
Investments
The fund and the reserve fund may be invested in any of the investments authorized by the Trustee Act 1949 [Act 208], for the investment of trust funds, or in such other manner as the State Authority may from time to time approve.
Accounts and Audit
Accounts and audit
(1) Every board shall keep and shall cause to be kept proper accounts and other records in respect of its operations, and shall cause to be prepared a statement of account in respect of each financial year.
(2) The accounts of the board shall be audited by auditors to be appointed annually by the State Authority.
(3) At the end of each financial year, as soon as the accounts of the board shall have been audited, the board shall cause copies of the statement of account to be transmitted to the State Authority together with a copy of any report or observations made by the auditors on any statement or on the accounts of the board.
(4) The State Authority shall cause a copy of every such statement of account to be published in the Gazette.
Constitution and Procedure
Constitution of boards
(1) A Chairman and members of every board shall be appointed, and shall hold office for such term and upon such conditions as may be determined, by the State Authority.
(2) There shall be paid to the Chairman and members of a board such salaries, fees and allowances for expenses as may from time to time be determined by the State Authority.
(3) Section 19 shall apply, mutatis mutandis, to meetings of a board and of any committee thereof.
Officers and Servants
Appointment, etc. of officers and servants
A board may appoint such officers and servants on such terms as to remuneration and other matters as the board may determine, and these may be paid, on the retirement or death of any of them as to whom the board may determine to make such provision, such gratuities or allowances to them or to others by reference to their service as the board may determine.
Annual Report
Annual report
(1) Every board shall, as soon as practicable after the end of each financial year, cause to be made and transmitted to the Ruler or Yang di-Pertua Negeri a report dealing generally with the activities of the board, during the preceding financial year and containing such information relating to the proceedings and policy of the board as the State Authority may from time to time direct.
(2) A copy of every such report shall be laid before the Legislative Assembly.
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).
