Financial Services Act 2013 s 56
s 56 Functions and duties of board of directors
(1) The business and affairs of an institution shall be managed under the direction and oversight of its board of directors, subject to this Act and any other written law which may be applicable to the institution.
(2) Without limiting the generality of subsection (1), the board of directors shall—
(a) set and oversee the implementation of business and risk objectives and strategies and in doing so shall have regard to the long term viability of the institution and reasonable standards of fair dealing;
(b) ensure and oversee the effective design and implementation of sound internal controls, compliance and risk management systems commensurate with the nature, scale and complexity of the business and structure of the institution;
(c) oversee the performance of the senior management in managing the business and affairs of the institution;
(d) ensure that there is a reliable and transparent financial reporting process within the institution; and
(e) promote timely and effective communications between the institution and the Bank on matters affecting or that may affect the safety and soundness of the institution.
(3) In carrying out its functions or duties under this Division, the board of directors of an institution shall have regard to the interests of depositors or policy owners of the institution and participants.
Malay text (authoritative)
Fungsi dan kewajipan lembaga pengarah
(1) Perniagaan dan hal ehwal suatu institusi hendaklah diuruskan di bawah arahan dan pengawasan lembaga pengarahnya, tertakluk kepada Akta ini dan mana-mana undang-undang bertulis lain yang boleh terpakai bagi institusi itu.
(2) Tanpa mengehadkan keluasan subseksyen (1), lembaga pengarah hendaklah—
(a) menetapkan dan mengawasi pelaksanaan objektif dan strategi perniagaan dan risiko dan dalam melakukan hal sedemikian hendaklah mengambil kira daya maju jangka panjang institusi itu dan standard urus niaga adil yang munasabah;
(b) memastikan dan mengawasi reka bentuk berkesan dan pelaksanaan kawalan dalaman yang kukuh, pematuhan dan sistem pengurusan risiko setara dengan jenis, skala dan kerumitan perniagaan dan struktur institusi itu;
(c) mengawasi pelaksanaan pengurusan kanan dalam menguruskan perniagaan dan hal ehwal institusi itu;
(d) memastikan bahawa terdapat suatu proses pelaporan kewangan yang boleh dipercayai dan telus dalam institusi itu; dan
(e) menggalakkan komunikasi yang tepat pada masanya dan berkesan antara institusi itu dan Bank mengenai perkara yang menjejaskan atau yang boleh menjejaskan keselamatan dan kekukuhan institusi itu.
(3) Dalam menjalankan fungsinya atau kewajipannya di bawah Penggal ini, lembaga pengarah institusi hendaklah mengambil kira kepentingan pendeposit atau pemunya polisi institusi itu atau peserta.
Read this section in the full act → · Open Division 2 →
Find Act 758 on lom.agc.gov.my ↗
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).
