(1) A director of an institution shall at all times—
(a) act in good faith in the best interests of the institution;
(b) exercise reasonable care, skill and diligence with—
(i) the knowledge, skill and experience which may reasonably be expected of a director having the same responsibilities; and
(ii) any additional knowledge, skill and experience which the director has;
(c) only exercise powers conferred on him for the purposes for which such powers are conferred; and
(d) exercise sound and independent judgment.
(2) Subsection (1) has effect in addition to, and not in derogation of, any written law or rule of law relating to the duty or liability of a director.
(3) Any director who contravenes paragraph (1)(c) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Malay text (authoritative)
Kewajipan pengarah
(1) Pengarah institusi hendaklah pada setiap masa—
(a) bertindak dengan suci hati demi kepentingan terbaik institusi itu;
(b) melaksanakan jagaan, kemahiran dan ketekunan yang munasabah dengan—
(i) pengetahuan, kemahiran dan pengalaman yang semunasabahnya dijangka daripada pengarah yang mempunyai tanggungjawab yang sama; dan
(ii) apa-apa pengetahuan, kemahiran dan pengalaman tambahan pengarah itu;
(c) hanya melaksanakan kuasa yang diberikan kepadanya bagi maksud kuasa itu diberikan; dan
(d) melaksanakan pertimbangan waras dan bebas.
(2) Subseksyen (1) mempunyai kesan sebagai tambahan kepada, dan tidak mengurangkan, mana-mana undang-undang bertulis atau rukun undang-undang yang berhubungan dengan tugas atau liabiliti pengarah.
(3) Mana-mana pengarah yang melanggar perenggan (1)(c) melakukan suatu kesalahan dan boleh, apabila disabitkan, dipenjarakan untuk tempoh tidak melebihi lapan tahun atau didenda tidak melebihi dua puluh lima juta ringgit atau keduaduanya.
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).
