Section 7
of Act 125
Section 7
Before a public company carries on borrowing Conditions business it shall apply in writing to the Minister through the for applica-Central Bank for a licence and shall supply the Central granting
Bank— licence.
(a)
a certified true copy of its memorandum and articles;
(b)
a certified true copy of its certificate of incorpora-tion;
(c)
a certified true copy of its latest and duly audited balance sheet; and
(d)
such other written information as may be required by the Central Bank, certified by a director or the secretary of the company.
(2)
Upon receiving an application under sub-section (1)
the Central Bank shall consider the application and make a recommendation to the Minister stating whether or not a licence should be granted to the company and the condi-tions (if any) to be attached to the licence.
(3)
Upon receiving the application and recommendation the Minister may grant a licence to the public company with or without conditions if the paid-up capital in cash of the public company (unimpaired by losses or otherwise) is not less than one million Malaysian dollars.
[S. 7-8]
Minister may suspend or revoke licence.
8 Act 6
(4)
Notwithstanding anything to the contrary in this section, a public company may carry on borrowing business without a licence if—
(a)
it is established for the purpose of financing economic or industrial development in which the Government of the Federation or the
Government of a State has (in the opinion of the Minister) a material interest as a share-holder; and
(ii)
it is exempted by the Minister on the recommen-dation of the Central Bank;
(5)
it performs the functions of a discount house; or
(c)
its debentures have been approved by the Central
Bank subject to such conditions as the Central
Bank may think fit to impose.