Malaysia legislation
Section 19
Section 19
(2)
The Minister on the recommendation of the Central Bank may appoint an auditor—
(a)
if the licensed bank fails to appoint an auditor; or
(b)
if he considers it desirable that another auditor should act with the auditor appointed under subsection (1), and may fix the remuneration to be paid by the licensed bank to that auditor.
(3)
The duties of the auditor appointed under subsections (1) and (2) shall be—
(a)
to carry out for the year in respect of which he is appointed—
(i)
in the case of a bank incorporated in the Federation, an audit of the accounts of that bank; and
(ii)
in the case of a licensed bank incorporated outside the Federation, an audit of the accounts of that bank in respect of its operations in the Federation; and
(b)
to make a report in accordance with section 174 of the Companies Act, 1965—
(i)
in the case of a licensed bank incorporated in the Federation, upon the annual balance sheet and profit and loss account; and
(ii)
in the case of a licensed bank incorporated outside the Federation, upon the annual balance sheet and profit and loss account in respect of its operations in the Federation.
(4)
The report of the auditor referred to in paragraph (b) (i) of subsection (3) shall be laid together with the report of the directors of the licensed bank at the annual general meeting of the bank; and a statutory declaration made by a senior officer of the bank to the effect that the report was so laid shall accompany the documents forwarded under paragraph (c) of subsection (1) of section 20.
(b)
The report of the auditor on the annual balance sheet and profit and loss account of a licensed bank incorporated outside the Federation forwarded under paragraph (c) (i) of subsection (1) of section 20 may be made in a manner that complies with the law for the time being applicable in the place of its incorporation or origin.
(5)
No person having an interest in a licensed bank otherwise than as a shareholder, and no director or officer of that bank shall be eligible for appointment as an auditor for that bank; and any person appointed as auditor to a licensed bank who shall after such appointment acquire such interest or become a director or an officer of that bank shall forthwith cease to be the auditor.
(6)
The duties, powers and liabilities imposed and conferred by section 35 in relation to an investigation by the Central Bank of the affairs of a licensed bank under section 33 or 34 are hereby imposed and conferred in relation to auditors appointed under this section.
(7)
Any licensed bank which fails to comply with the requirements of subsection (4) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding five thousand dollars.
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