Establishment of the Board
(1) A body corporate to be known by the name of “Public Sector Home Financing Board” is established.
(2) The Board shall have perpetual succession and a common seal.
(3) The Board may sue and be sued in its own name.
(4) Subject to and for the purposes of this Act, the Board may, upon such terms as it deems fit—
(a) enter into contracts;
(b) acquire, purchase, take, hold or enjoy, as the case may be, any property, right, interest, obligation and liability of every description; and
(c) sell, convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer, lease or otherwise dispose of, or deal with, any property, right, interest, obligation and liability vested in the Board.
Vesting provisions
(1) Subject to this Act, the Minister may, from time to time, by order published in the Gazette, appoint a vesting date and on such date all properties, rights, interests, obligations and liabilities of the Government specified by the Minister in such order relating to the administration of loan under the repealed Act shall, by virtue of this Act, be transferred to and vested in the Board without any conveyance, assignment or transfer.
(2) Every property, right, interest, obligation and liability transferred to and vested in the Board by virtue of subsection (1) shall be so transferred to and vested in the Board for the like title, estate or interest and on the like tenure as the property, right, interest, obligation and liability were vested or held immediately before the vesting date.
(3) Every chose in action, right, interest, obligation or liability vested in the Board by virtue of subsection (1) may, on and after the vesting date, be sued on, recovered or enforced by the Board in its own name and it shall not be necessary for the Board or the Government to give notice—
(a) to the person bound by the chose in action of; or
(b) to the person whose right, interest, obligation or liability is affected by,
the vesting effected under subsection (1).
(4) Any pending legal proceedings by or against the Government which relates to any property, right, interest, obligation or liability transferred to and vested in the Board by virtue of subsection (1) may, on and after the vesting date, be continued by or against the Board.
(5) In the case of rights, interests, obligations and liabilities arising under any loan which are vested in the Board on the vesting date, the Board may enter into such agreements or arrangements over such rights, interests, obligations and liabilities with the Government or any other person.
(6) Where by virtue of subsection (1), any property is transferred to and vested in the Board, the provisions of Part Thirty of the National Land Code 1965 [Act 56 of 1965] shall, for the purpose of effecting the registration of such vesting, apply to the Board.
(7) On and after the vesting date, any agreement, deed or other arrangement relating to any property, right, interest, obligation and liability transferred to and vested in the Board under subsection (1) to which the Government was a party immediately before the vesting date, whether in writing or not, and whether or not of such a nature that property, right, interest, obligation and liability under the agreement, deed or other arrangement, as the case may be, could be assigned by the Government, shall have effect as if the Board had been a party to such agreement, deed or other arrangement.
(8) In this section, “vesting date” means the date appointed by the Minister under subsection (1).
Common seal
(1) The common seal of the Board shall bear such device as the Board may approve and such seal may be broken, changed, altered and made anew by the Board as it deems fit.
(2) Until a seal is provided by the Board, a stamp bearing the words “Public Sector Home Financing Board” may be used and shall be deemed to be the common seal of the Board.
(3) The common seal of the Board shall be kept in the custody of the Chairman and shall be authenticated by any two members of the Board authorized by the Board, or by one member of the Board and the Chairman.
(4) All deeds, documents and other instruments purporting to be sealed with the common seal and authenticated in accordance with subsection (3) shall, until the contrary is proved, be deemed to have been validly executed.
(5) The common seal of the Board shall be officially and judicially noticed.
Functions of the Board
The functions of the Board are—
(a) to manage the Fund and to administer the public sector home financing facility in accordance with the provisions of this Act;
(b) to advise the Minister on matters relating to the public sector home financing facility; and
(c) to do such other things as may be required or permitted to do under this Act.
Powers of the Board
(1) The Board shall have the power to do all things necessary or expedient for or in connection with the performance of its functions.
(2) Without prejudice to the generality of subsection (1), the powers of the Board shall include the power—
(a) to utilize all properties of the Board in such manner as the Board may think expedient including raising of moneys for the purposes of the Fund by securitizing or mortgaging the properties;
(b) to co-operate with the Federal Government, any State Government, local authority, statutory authority or body corporate for the purposes of performing the functions of the Board;
(c) subject to subsection (3), to impose fees or charges for services rendered by the Board;
(d) to require the furnishing of information by any person to assist the Board in the performance of its functions;
(e) to appoint such agents, advisors including experts, advocates and solicitors, bankers and consultants, and other persons as the Board deems fit to assist it in the performance of its functions; and
(f) to grant loans, scholarships and advances to employees of the Board.
(3) The Minister may, by order published in the Gazette, prescribe the fees and charges to be imposed by the Board.
Membership of the Board
(1) The Board shall consist of the following members:
(a) the Secretary General of Treasury, as Chairman;
(b) the Attorney General or his representative;
(c) the Accountant General or his representative;
(d) the Chief Executive Officer who is an ex-officio member;
(e) not more than three members from amongst the officers of the federal public service who shall be appointed by the Minister; and
(f) not less than two but not more than four other members who shall be appointed by the Minister.
(2) The members appointed under paragraph (1)(f) shall be fit and proper persons from amongst persons who, in the opinion of the Minister, have standing and experience in banking, or financial or legal matters.
(3) In determining whether a person is a fit and proper person for the purposes of subsection (2), the Minister shall have regard to—
(a) the probity, competence and soundness of judgment of the person in fulfilling his responsibilities as a member of the Board; and
(b) the diligence with which the person is likely to fulfil his responsibilities as a member of the Board.
(4) Without prejudice to the generality of subsection (2), the Minister shall have regard to the previous business conduct and activities of the person and, in particular, to any evidence that he—
(a) has been compounded of or charged with, an offence whether convicted or otherwise, which is punishable with—
(i) imprisonment for six months or more, whether by itself, or in lieu of, or in addition to, a fine; or
(ii) a fine of ten thousand ringgit or more;
(b) has contravened any provision under any written law which, in the opinion of the Minister, is designed for protecting members of the public against financial loss due to dishonesty, incompetence or malpractice or against financial loss due to the conduct of discharged or undischarged bankrupts; or
(c) has engaged in or has been associated with, any business practice, or otherwise conducted himself in such a way as to cast doubt on his competence and soundness of judgment.
(5) The Minister shall appoint a Deputy Chairman of the Board from amongst the members appointed under paragraphs (1)(b), (c) or (e).
Tenure of office
Subject to such conditions as may be specified in his instrument of appointment, a member of the Board appointed under paragraph 8(1)(e) or (f) shall, unless he sooner resigns or vacates his office or his appointment is sooner revoked, hold office for a term not exceeding two years and shall be eligible for reappointment for a maximum period of three consecutive terms.
Allowances
The members of the Board shall be paid such allowances as the Minister may determine.
Revocation and resignation
(1) The Minister may, at any time, revoke the appointment of any member of the Board appointed under paragraph 8(1)(e) or (f).
(2) A n y m e m b e r o f t h e B o a r d a p p o i n t e d u n d e r paragraph 8(1)(e) or (f) may, at any time, resign by giving a one-month written notice to the Minister.
Meetings and procedures of the Board
(1) The Board shall convene its meetings at least twice in a year at such time and place as the Chairman may determine.
(2) All meetings of the Board shall be presided by the Chairman or, in the absence of the Chairman, the Deputy Chairman.
(3) The quorum of the meeting of the Board shall be five and shall consist of at least—
(a) t w o m e m b e r s o f t h e B o a r d a p p o i n t e d u n d e r paragraphs 8(1)(b), (c) or (e), not including the Deputy Chairman if the meeting is presided by the Deputy Chairman; and
(b) o n e m e m b e r o f t h e B o a r d a p p o i n t e d u n d e r paragraph 8(1)(f).
(4) The decisions of the Board shall be adopted by a simple majority of votes of the members present and voting, and in the case of an equality of votes, the Chairman shall have a casting vote in addition to his deliberative vote.
(5) Any minutes of meetings of the Board shall, if duly signed by the Chairman, be admissible as evidence of the facts stated therein in any legal proceedings and every meeting in respect of which minutes have been so made shall be deemed to have been duly convened and held and all members thereat to have been duly qualified to act.
(6) The Board shall cause minutes of all its meetings to be maintained and kept in a proper form.
(7) A resolution is taken to have been passed—
(a) at a meeting of the Board, if all members of the Board have been informed of the proposed resolution, or reasonable efforts have been made to inform all members of the Board of the proposed resolution; or
(b) without meeting, if all members of the Board indicate agreement with the resolution in accordance with the method determined by the Board.
(8) Subsection (7) applies only if the Board—
(a) decides that the subsection applies; and
(b) decides the method by which members of the Board are to indicate agreement with the resolution.
(9) The Board may determine its own procedure.
Committees
(1) The Board may establish any committee as the Board considers necessary or expedient to assist the Board in the performance of its functions or in the exercise of its powers.
(2) The Board may elect any member of the Board or any other person to be the chairman of a committee.
(3) Members of a committee may be appointed from amongst the members of the Board or such other persons as the Board deems fit.
(4) A member of a committee who is not a member of the Board shall hold office for such term as the Board may specify in his letter of appointment and shall be eligible for reappointment.
(5) The Board may, at any time, revoke the appointment of any member of a committee who is not a member of the Board.
(6) A member of a committee who is not a member of the Board may, at any time, resign by giving a notice in writing to the Chairman.
(7) The Board may, at any time, discontinue or alter the constitution of a committee.
(8) The meetings of a committee shall be held at such times and places as the chairman of the committee may determine.
(9) A committee shall cause—
(a) minutes of all its meetings to be maintained and kept in a proper form; and
(b) copies of the minutes of all its meetings to be submitted to the Board as soon as practicable.
(10) Any minutes of meetings of a committee shall, if duly signed by the chairman of the committee, be admissible as evidence of the facts stated therein in any legal proceedings, and every meeting in respect of which minutes have been so made shall be deemed to have been duly convened and held and all members thereat to have been duly qualified to act.
(11) Members of a committee may be paid such allowances as the Minister may determine.
(12) A committee may determine its own procedure.
(13) A committee shall be subject to, and act in accordance with, any direction given to the committee by the Board.
Vacation of office
The office of a member of the Board appointed under paragraph 8(1)(e) or (f) and the appointment of a member of a committee who is not a member of the Board shall be vacated if—
(a) he dies;
(b) there has been proved against him, or he has been convicted of, a charge in respect of—
(i) an offence involving fraud, dishonesty or moral turpitude;
(ii) an offence under any law relating to corruption; or
(iii) any other offence punishable with imprisonment, whether in itself only or in addition to or in lieu of a fine, for more than two years;
(c) he becomes of unsound mind or otherwise incapable of discharging his duties;
(d) he becomes bankrupt;
(e) he becomes a member of the Senate or House of Representatives or of any Legislative Assembly of a State;
(f) he holds any post in a political party;
(g) in respect of a member of the Board, he absents himself from three consecutive meetings of the Board without leave of the Chairman, and in respect of a member of a committee who is not a member of the Board, he absents himself from three consecutive meetings of the committee without leave of the chairman of the committee;
(h) in respect of a member of the Board, his appointment is revoked by the Minister, and in respect of a member of a committee who is not a member of the Board, his appointment is revoked by the Board; or
(i) he resigns.
Board and committee may invite others to meetings
(1) The Board and committee may invite any person to attend any of the meetings of the Board or committee, as the case may be, for the purpose of advising the Board and committee on any matter under discussion, but such person shall not be entitled to vote at the meeting.
(2) Any person invited under subsection (1) may be paid such allowances as the Minister may determine.
Disclosure of interest
(1) A member of the Board or committee or any person invited to attend the meetings of the Board or committee having, directly or indirectly, any interest in relation to any matter under discussion by the Board or committee shall disclose to the Board or committee, as the case may be, the fact and nature of his interest.
(2) A disclosure under subsection (1) shall be recorded in the minutes of the meetings of the Board or committee, as the case may be.
(3) After the disclosure under subsection (1), the member of the Board or committee or any person invited to attend the meetings of the Board or committee—
(a) shall not take part or be present in any deliberation or during the making of any decision of the Board or committee, as the case may be, relating to the matter; and
(b) shall be disregarded for the purpose of constituting a quorum of the Board or committee, as the case may be, in the deliberation or during the making of any decision relating to the matter.
Validity of acts and proceedings
No act done or proceedings taken under this Act shall be questioned on the ground of—
(a) any vacancy in the membership of, or any defect in the constitution of, the Board or a committee; or
(b) any omission, defect or irregularity not affecting the merits of the case.
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).
