*MAJLIS AMANAH RAKYAT ACT 1966

This Act shall have effect throughout Malaysia.

Interpretation

First Schedule shall have effect with respect to the Majlis.

Majlis Amanah Rakyat 9

The Majlis shall consist of the following members to be appointed by the Minister:

The Minister shall, in respect of each member of the Majlis who is a public officer, appoint an alternate member who may attend any meeting of the Majlis which the member is for any reason whatsoever unable to attend and the alternate member, when so attending, shall for all purposes be deemed to be a member of the

Majlis.

If the Chairman is unable to exercise his functions under this

Act owing to illness, absence from Malaysia or for any cause whatsoever, the Minister may appoint any other person, whether or not he is a member of the Majlis, to be a temporary Chairman who shall perform the functions and exercise the powers of the Chairman under this Act.

A member of the Majlis, other than the Chairman, shall, unless his appointment is sooner resigned or revoked, hold office for such terms as may be specified in the instrument appointing him, and shall be eligible for re-appointment:

Provided that a member, other than the Chairman, shall not hold officer for a term exceeding two years at any one time.

Appointment and salary of Chairman and fees and allowances of members

The Chairman shall be appointed upon such terms and conditions as the Minister may determine.

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There shall be paid to the members of the Majlis such remuneration or allowances as the Majlis may determine with the approval of the Minister.

Powers of the Minister to give directions

It shall be the duty of the Majlis to promote, stimulate, facilitate and undertake economic and social development in Malaysia and more particularly in the rural areas thereof.

Subject to the prior approval of the Minister, and in the case of the power set out in paragraph (d), the concurrence of the Minister of

Finance, the Majlis shall have powers for the purpose of the discharge of its duty under subsection (1)—

Notwithstanding any other provision in this Act or section 95

of the Private Higher Educational Institutions Act 1996 [Act 555], the

Private Higher Educational Institutions Act 1996 shall apply to an

*NOTE─ The Companies Act 1965 [Act 125] has been repealed by the Companies

Act 2016 [Act 777] w.e.f. 31 January 2017.

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educational institution established, operated and maintained under paragraph (2)(e).

The director of each division shall be appointed by the Majlis with the approval of the Minister and shall be responsible to Director

General.

It shall be the responsibility of the director of an appropriate division subject to the direction of the Director General to implement and execute the decision of the Majlis on matters pertaining to his division, to submit policy recommendations for consideration by the

Majlis, to participate, without the right to vote, in any meeting of the

Majlis whenever matters pertaining to his division are being

Majlis Amanah Rakyat 13

considered in that meeting and also to exercise all powers that may be delegated to him by the Majlis.

Appointment of committees

Any committee appointed under subsection (1) may include as its members and invite to any of its meetings, persons other than members officers or servants of the Majlis; and where such persons are so included or invited, the Majlis may by resolution declare the remuneration or allowances of such persons; and such remuneration or allowances shall be paid out of the Fund.

Any committee appointed under this section may appoint one or more than one subcommittee.

Appointment of other officers

An officer or servant of the Majlis appointed under subsection

shall subject to the direction of the Director General be under the administrative control of the director to whose division such officer or servant is appointed, transferred or assigned.

Power of Majlis to delegate

The Majlis may at the time of delegating any power or authority under subsection (1) to any of the members of the Majlis, director or committee or at any time thereafter give directions as to the manner in which such delegated power or authority is to be exercised and may at any time revoke, modify or increase such delegation.

Without prejudice to the generality of subsection (1) and subject to subsection (2), the Majlis may delegate to any of the members of the

Majlis, director, committee or any person, whether an officer or servant of the Majlis or not, authority to sanction expenditure from the Fund or any other money under the control of the Majlis up to such limit as the Majlis shall in each case prescribe.

Power to make rules relating to salaries, provident fund scheme, etc.

Second Schedule shall apply to the rules made under this section.

The Fund shall consist of—

In this section, the expression “loan funds” means such sums as may be made available from time to time to the Government by way of loan.

Balancing of revenue account

The payment into and out of the reserve fund shall be determined by the Majlis: Provided that no part of the reserve fund shall be applied otherwise than for the purposes of the Majlis.

Expenses to be charged on the Fund

paying all expenses incurred under sections 22 and 23;

granting loans under section 24;

paying any expenses lawfully incurred by the Majlis, including survey, legal and other fees and costs, and the remuneration of officers and servants appointed and employed by the

Majlis, including superannuation allowances, pensions or gratuities;

paying any other expenses, cost or expenditure properly incurred or accepted by the Majlis in the execution of its duty or in the discharge of its functions under section 6;

purchasing or hiring plant, equipment, machinery, stores and any other materials and acquiring land and erecting buildings and carrying out any other works and undertakings in the execution of its duty or in the discharge of its functions under section 6, in contemplation of loans to be made for those purposes under section 24, so, however, that any sums expended by the Majlis under this paragraph shall be set off

Majlis Amanah Rakyat 17

against the loans in contemplation of which they were expended upon the actual making of such loans.

Expenditure and preparation of estimates

Before the beginning of September of each year the Majlis shall submit to the Minister an estimate of the expenses (including those for development projects) for the following year in such form and containing such particulars as the Minister may require; and the

Minister shall before the beginning of that following year notify the

Majlis of the amount authorized for expenses generally or of the amounts authorized for each description of expenditure.

The Majlis may at any time submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any part of the additional expenditure included therein.

Accounts and audit

The accounts of the Majlis shall be audited annually by the

Auditor General or other auditor appointed by the Majlis with the approval of the Minister.

After the end of each financial year, and as soon as the accounts of the Majlis have been audited, the Majlis shall cause a copy of the statement of accounts to be transmitted to the Minister, together with a copy of any observations made by the Auditor General or other auditor appointed under subsection (2) on any statement or on the accounts of the Majlis.

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The Minister shall cause a copy of every such statement and observations to be laid before each House of Parliament.

Annual report

The Minister shall cause a copy of every such report to be laid before each House of Parliament.

Third Schedule shall apply to the loans granted by the Majlis under this section.

Power to establish corporations

Fourth Schedule shall apply to the corporation established by the

Majlis under subsection (1).

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Additional functions of the Majlis

The expenses and compensation in respect of any immovable property acquired under this section shall be paid by the Majlis or by the corporation.

When any immovable property has been acquired under this section, the Majlis or the corporation shall extract the necessary documents of title in respect of such property and shall pay any rent to which such property may be subject.

Majlis Amanah Rakyat 21

of any vacancy in the membership of, or any defect in the constitution of, the Majlis;

of the contravention by a member of the Majlis of paragraph 4

of the First Schedule, relating to the disclosure of interest by a member; or

of any omission, defect or irregularity not affecting the merits of the case.

Public Authorities Protection

obtains a loan from the Majlis under this Act by means of any false representation;

wilfully applies any loan made to him by the Majlis under this Act to any purpose other than the purpose for which the loan was made;

having obtained a loan from the Majlis under this Act, wilfully destroys any security given in relation to any such loan, shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding two years or to a fine of five thousand ringgit or to both.

Any person who contravenes subsubparagraph 6(1)(b) or subparagraph 6(2) of Third Schedule shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one thousand ringgit.

In any criminal proceeding in respect of an offence under paragraph (1)(b), the onus of proving that he acted in good faith and without knowledge that he was not entitled so to apply the loan or any part thereof shall be upon the person charged.

Majlis Amanah Rakyat 23

Public Prosecutor’s consent

any person holding the appointment of a Federal Counsel and authorized by the Attorney General for the purpose; or

any officer of the Majlis authorized in that behalf by special or general directions of the Chairman, may, on behalf of the Majlis or the corporation, as the case may be, institute, appear in and conduct such proceedings and may make and do all appearances, acts and applications in respect of such proceedings.

The Majlis and corporation deemed to be a Malay or a native

with respect to any of the matters concerning the establishing of a corporation referred to in section 25;

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prescribing the manner in which documents, cheques and instruments of any description shall be signed or executed on behalf of the Majlis or any corporation;

prescribing for the responsibilities and control of officers and servants of the Majlis;

imposing fees in such cases as may be determined by the

Majlis;

for the opening, keeping, closing and audit of accounts of corporations; and

generally for the exercise of its powers and duties under this

Act.

the Rural and Industrial Development Authority Ordinance 1953 [Ord. No. 48 of 1953] (in this Act referred to as “the

Ordinance”) shall cease to have effect and such cesser shall be deemed to be a repeal of that Ordinance for the purpose of the Interpretation Acts 1948 and 1967 [Act 388];

the Rural and Industrial Development Authority (in this Act referred to as “the Authority”) being a body corporate established under that Ordinance shall likewise cease to exist.

Majlis Amanah Rakyat 25

Continuance of laws, etc.

All orders, directions, appointments, notifications, rules and regulations made under the Ordinance and in force immediately before the appointed day shall, insofar as they are not inconsistent with this

Act, be deemed to have been made under this Act and shall continue in force until other provisions shall be made under this Act or until the date upon which they expire.

Transfer of powers, rights, liabilities and duties

Subject to this Act and to any direction of the Minister, all property and assets other than land which immediately before the appointed day were vested in the Authority or in any person on behalf of the Authority shall on that day vest in the Majlis.

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It is hereby declared that any property, whether movable or immovable, which immediately before the first day of January 1954

was used for the purposes which after that date became the purposes of the Authority shall on the appointed day be vested in the Majlis.

Existing contracts

Subject to this Act, any proceedings (whether civil or criminal)

or cause of action pending or existing immediately before the appointed day by or against the Authority or any person acting on behalf of the Authority may be continued or instituted by or against the

Majlis as it might have been by or against the Authority or such person if this Act had not been passed.

Any appeal brought or any leave to appeal applied on or after the appointed day against a decision given in any legal proceedings before that day may be brought by or against the Majlis.

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Transfer of Fund

The following persons shall be disqualified from being appointed or being members of the Majlis:

A member of the Majlis shall vacate his office if he fails to attend three consecutive meetings of the Majlis without the permission in writing of the Minister or if he becomes disqualified under subparagraph (1).

Meetings of the Majlis

The Chairman and three members shall form a quorum at any meeting of the Majlis.

If on any question to be determined by the Majlis there is an equality of votes, the Chairman shall have a casting vote.

Subject to subparagraphs (1), (2) and (3) the Majlis shall determine its own procedure.

Common seal

Until a seal is provided by the Majlis a stamp bearing the description

“MARA” may be used and shall be deemed to be the common seal.

The common seal or the stamp under subparagraph (2) shall be kept in the custody of the Chairman and shall be authenticated by him or by any officer

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authorized by him in writing; and all deeds, documents, and other instruments purporting to be sealed with the said seal, authenticated as aforesaid, shall until the contrary is proved be deemed to have been validly executed:

Provided that any document or instrument which if executed by a person not being a body corporate would not be required to be under seal may in like manner be executed by the Majlis; and any such document or instrument may be executed on behalf of the Majlis by any officer or servant of the Majlis generally or specially authorized by the Majlis in that behalf.

The seal of the Majlis shall be officially and judicially noticed.

Disclosure of interest

for the establishment and management, as from such date (whether before or after the establishment of the Majlis) as may be specified in the rules, of a contributory provident fund, and for the transfer into that fund of contributions or parts of contributions paid into any other provident fund in anticipation of the establishment of the first-mentioned fund;

for retirement benefits to officers and servants who retire or otherwise cease to hold office as such officers or servants; or

for the making of loans to officers and servants for the purchase of bicycles, motor cycles and motor cars and for any other purpose approved by the

Minister.

Restrictions on rules made under paragraph 1

no donation, contribution, gratuity, allowance or other payment payable under such rules, nor any right or interest acquired by any person to any gratuity, allowance or other payment thereunder, shall be assignable or transferable or liable to be attached, sequestered or levied upon for or in respect of a debt or claim whatsoever, other than a debt due to the Majlis;

any moneys paid under any such rules on the death of any person shall be deemed to be impressed with a trust in favour of the persons entitled thereto under the will or intestacy of such deceased person, but shall not be deemed to form part of his estate or be subject to his debts;

any person may by his will or by a memorandum under his hand appoint a trustee of the moneys payable on his death under any such rules, and may provide for the appointment of a new trustee or trustees of such moneys and for the investment thereof;

if at the time of the death of any person or at any time afterwards there is no trustee of such moneys or it is expedient to appoint a new trustee or trustees,

Majlis Amanah Rakyat 31

then and in any such case a trustee or trustees or a new trustee or trustees may be appointed by the High Court or a Judge thereof;

the receipt of a trustee or trustees duly appointed, or in default of any such appointment the receipt of the legal personal representative of a deceased person, shall be a discharge for any moneys payable on his death under any such rules;

no donation, contribution or interest paid under any such rules shall be subject to the debts of the contributor, nor shall such donation, contribution or interest be paid to the Director General of Insolvency on the bankruptcy of a contributor under any such rules, but if such contributor is adjudicated a bankrupt or is declared insolvent by judgment of the Court, such donation or contribution or interest shall, subject to such rules, be deemed to be impressed with a trust in favour of the person entitled thereto on the death of the contributor;

the bankruptcy of a contributor shall not affect the making of deductions from the salary of the contributor in accordance with any such rules, but such deductions shall continue to be made notwithstanding any written law, and the portion of salary so deducted shall be deemed not to form part of his after-acquired property;

any officer or servant who is a contributor under such rules shall, if he is dismissed from service as such officer or servant for fraud or dishonesty or misconduct which involves pecuniary loss to the Majlis, or retires or resigns his office with intent to escape discharge or dismissal in consequence of such fraud, dishonesty or misconduct, forfeit, subject to such conditions as may be provided by the rules, all or any part of the contributions made by the Majlis and the interest accrued thereon, as the Majlis in its discretion think fit; and an appeal shall lie to the Minister against any such forfeiture.

THIRD SCHEDULE

[Subsection 24(2)]

Charge on property and priority of loan

postpone, for any time not exceeding five years, the payment of any sum due for principal and interest or for either principal or interest in respect of a loan made by it upon such terms and conditions for the carrying out of the purposes for which such loan was made and for ultimate repayment of such principal or payment of such interest as it may deem necessary;

from time to time extend the period for the repayment of any loan, or compound or release any loan or any part thereof subject to such terms and conditions as it may deem fit.

Payment of loan before due date

from time to time, make or cause to be made such enquiry as may be necessary to ensure that the loan is being applied to the purpose for which it was made;

Majlis Amanah Rakyat 33

require reports including financial statement in such detail as it may determine to be submitted by the person, body or authority in receipt of the loan bi-annually or at shorter intervals at the discretion of the Majlis and such person, body or authority shall comply with such request.

The Majlis may authorize in writing any of its officers or any other person to make such enquiry, and the person, body or authority in receipt of the loan shall produce to such officer or person all the relevant books, documents and other matters and things necessary for the purposes of the enquiry.

Order of Majlis upon such enquiry

where such loan has been secured by charge or mortgage, by notice in writing addressed to the chargor or mortgagor, recall the said loan or any part thereof and may require the loan or that part together with any interest due on such loan or part thereof on the date of the notice to be repaid on a date to be specified in the notice and in default of payment on such specified date any security given for the purpose of the loan may thereupon be realised;

where such loan has been secured otherwise than by way of charge or mortgage, by notice addressed to the borrower, request the loan or any part thereof together with any interest due on such loan or part thereof on the date of the notice to be repaid on a date to be specified in the notice and in default of payment on such specified date any security given for the purpose of the loan may thereupon be realised.

Subparagraph (1) shall be in addition to any other proceedings under any other written law.

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Enforcement of securities

the purposes and objects for which such corporation is established;

the rights, powers, duties and functions of such corporation;

the system of management thereof; and

the relations between such corporation and the Majlis and its rights of control over such corporation.

Saving

Upon the dissolution of any corporation under this paragraph the assets of the corporation after payment of all liabilities shall be transferred to and vested in the

Majlis.

The winding up of a corporation under this paragraph shall be conducted in such manner as the Majlis may prescribe.

Corporations to be bodies corporate

Until a seal is provided by the corporation under this paragraph a stamp bearing the name of the corporation encircling the letters “MARA” may be used as a common seal.

The common seal, or the stamp referred to in subparagraph (2), shall be in the custody of such person as the corporation shall direct and shall be authenticated by such person; and all deeds, documents and other instruments purporting to be sealed with the said seal, authenticated as aforesaid, shall until the contrary is proved, be deemed to have been validly executed:

Provided that any document or instrument which if executed by a person not being a body corporate would not be required to be under seal may in like manner be executed by the corporation; and any such document or instrument may be executed on behalf of the corporation by any officer or servant of the corporation generally or specially authorized by the corporation in that behalf.

The seal of every corporation shall be officially and judicially noticed.

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37

Act 489

LIST OF AMENDMENTS

_________________

Amending law

Short title

In force from

Act A19

Majlis

Amanah

Rakyat

(Amendment) Act 1969

28-03-1969

Majlis

Amanah

Rakyat

(Amendment) Act 1972

01-09-1971

Majlis

Amanah

Rakyat

(Amendment) Act 1973

22-04-1973

Majlis

Amanah

Rakyat

(Amendment) Act 1975

30-05-1975

Statutory Bodies Act 1976

01-06-1976

Act 478

Revocation of Exemption From

Payment of Stamp Duties Act 1992

21-02-1992

Act A1178

Majlis

Amanah

Rakyat

(Amendment) Act 2002

27-12-2002

38

Act 489

LIST OF SECTIONS AMENDED

Section

Amending authority

In force from

2

01-09-1971 22-04-1973 30-05-1975 3

Act A19

28-03-1969 01-09-1971 22-04-1973 30-05-1975 4

01-09-1971 01-06-1976 5

Act A348 01-06-1976 6

Act A1178

01-06-1976 27-12-2002 6A

22-04-1973 30-05-1975 7

Act A199

01-09-1971 22-04-1973 30-05-1975 8

10

01-09-1971 11

Majlis Amanah Rakyat 39

______________

Section

18

Amending authority

In force from

01-06-1976 25

Act A302 30-05-1975 29

Act A119 01-09-1971 30

Act 478 21-02-1998 31

Act A119 01-09-1971 35

First Schedule

Act A210 22-04-1973

First A Schedule

Act 210

Act A302 22-04-1973 30-05-1975