Section 4 — TAKAFUL ACT 1984

(a)

by a company as defined in the Companies Act 1965; or

(b)

by a society registered under the Co-operative Societies Act.

(2)

No such company or society shall carry on family solidarity business or general business or both in Malaysia as takaful operator unless—

(a)

it is registered under this Act in respect of that class of business or both;

(b)

in the case of a company as defined in the Companies Act 1965 and a society mentioned in subsection (1) (b), it maintains at all times a surplus of assets over liabilities of not less than the amount as may be prescribed from time to time;

(c)

it has the deposit required by this Act in respect of it; and

(d)

it is a member of a takaful association approved by the Minister, provided that this paragraph shall not apply until such an association is established.

(3)

For the purposes of subsection (2) (b), the surplus of assets shall be in the form of cash or securities specified in the First Schedule, or any combination thereof.

(4)

For the purposes of this section, the value of takaful assets and liabilities may be determined on a basis to be prescribed from time to time.

(5)

A person who contravenes this section shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding eighty thousand ringgit, increased by sixteen thousand ringgit for each day on which he is proved to have done so, or to imprisonment for a term not exceeding twelve months or to both.