s 26 Power of the Board to invest
(1) The Board may subject to subsection 18(2), invest moneys belonging to the Fund in the following manner: (a) to be deposited in— (i) Bank Negara Malaysia; or (ii) banks duly licensed under the Banking and Financial Institutions Act 1989 [Act 372]; or (iii) any other financial institution duly licensed under the Banking and Financial Institutions Act 1989 and approved by the Minister; (b) to be invested in— (i) shares of any public company listed on the stock exchange established in Malaysia and buying of new shares, the issue or sale of which has been approved under the Securities Industry Act 1983 [Act 280], in any public limited company incorporated in Malaysia which is listed on a stock exchange in Malaysia or the listing of which on a stock exchange in Malaysia has been approved under the Securities Industry Act 1983; or (ii) debentures of any public company; (c) in bonds or purchasing of mortgage papers, commercial notes, banker’s acceptances, money market papers, certificates of deposits, private debt securities, promissory notes and bills of exchange within the meaning of the Bills of Exchange Act 1949 [Act 204] and other negotiable instrument of similar nature; (d) in accordance with the provisions of the Trustee Act 1949 [Act 208]: Provided however, where the Board invests in or upon titles to immovable property in Malaysia in accordance with paragraph 4(1)(c) of the Trustee Act 1949, such immovable property may or may not yield any income at the time of such investment; (e) to provide loans to Federal or State Government; and (f) to provide loans to members of the Fund subject to such terms and conditions as may be determined by the Board for the purpose of purchasing or building a house. (2) The Board may with the written approval of the Minister, invest moneys belonging to the Fund in the following manner: (a) to be deposited in any bank or financial institution established by or under any written law; (b) to be invested in any joint venture; (c) by participating in any privatization programme; (d) to provide loans to any company incorporated under the Companies Act 1965 [Act 125] or any corporation established by or under any written law; (e) by investing in any investment outside Malaysia; or (f) investing in any other form of investment. (3) For the purpose of this section— “debenture” includes debenture stock, bonds, notes and any other securities of a corporation whether constituting a charge on the assets of the corporation or not; and “share” means paid-up shares (whether fully paid or not) in the share capital of a company and includes stocks and rights to subscribe for any stocks and shares. Power of the Board to invest in an approved company 26 A. (1) In addition to the powers of the Board to invest in accordance with section 26, the Board may invest— (a) in loans to an approved company or the buying of shares in an approved company; or (b) in special housing loans to an approved company. (2) No moneys belonging to the Fund shall be invested in accordance with subsection (1) unless— (a) the paid-up ordinary share capital of the approved company is not less than five million Malaysian ringgit; (b) the approved company has paid a dividend at the rate of not less than five per centum upon such ordinary share capital during each of the last three years prior to the time of investment and where the approved company is a company which has acquired the assets and liabilities of another approved company, payment of a dividend by that other company during each of the last three years prior to the time of such acquisition shall be treated as payment by the approved company; (c) in the case of an approved company having as its sole or primary object the promotion of home ownership and, the total amount of the borrowings of the approved company from all sources, excluding the amount of any special housing loan, whether trustee or not, accepted by the approved company on loan and deposit, and including interest due thereon and not repaid by the approved company, does not at any time exceed three-fourths of the amount, excluding prospective interest, for the time being secured to the approved company from its borrowers: Provided that the Minister may vary any limitation imposed on the total amount of the borrowings of the approved company in this paragraph; (d) a certificate that the provisions of paragraphs (a), (b) and (c) of this subsection were complied with in respect of the last financial year of the approved company, if incorporated in the auditor’s report annexed to the approved company’s annual accounts required to be prepared under the Companies Act 1965, to which the approved company is subject, shall be conclusive in favour of the Board making such investment; and (e) any agreement as to repayment made between the Board and the approved company shall be immediately determined if— (i) the approved company shall cease to comply with any of the provisions of paragraphs (a), (b) and (c) of this subsection; (ii) the approved company shall fail to obtain a certificate in the terms and in the manner stated in paragraph (d) of this subsection; or (iii) the Minister may at any time by notification in the Gazette, order that the company shall cease to be an approved company in consequence of his considering that the company has departed from its sole or primary object, and any moneys belonging to the Fund shall be repayable immediately thereupon.