s 19 Formation of subsidiaries
(1) No co-operative society shall form, own, acquire or establish a subsidiary except with the prior written approval of the Commission. (2) No co-operative society shall grant any Islamic financing or credit facility or give any guarantee or undertaking to such financing or facility or transfer of any money or asset in any form to its subsidiaries except with the prior written approval of the Commission. (3) The Commission may, by a notice in writing, require any subsidiary of a co-operative society to comply with any requirement as imposed by this Act, regulations or orders or directives or guidelines. (4) Any co-operative society or officer of the co-operative society who fails to comply with subsection (1) or (2) commits an offence and shall, on conviction— (a) in the case of a co-operative society, be liable to a fine not exceeding five hundred thousand ringgit and shall in addition, be liable to a daily fine of one hundred ringgit for each day during which the offence continues after conviction; or (b) in the case of officer of the co-operative society, to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both and shall in addition, be liable to a daily fine of one hundred ringgit for each day during which the offence continues after conviction.