Malaysia legislation
Section 106G
Section 106G
(a)
has been convicted of an offence under this Act or under any other written law; or
(b)
has had any offence committed by him compounded under section 113, and such offence has resulted in, or caused, or subsequent to its commission, results in, or causes, any loss or damage of any nature or in any form to a prescribed institution, the Bank may institute civil proceedings in court for the purpose of seeking indemnity from the persons referred to in subsection (2).
(2)
The following persons shall be jointly and severally liable to indemnify the prescribed institution in full for any loss or damage to the prescribed institution:
(a)
the person convicted of the offence, or the person against whom the offence has been compounded under section 113;
and
(b)
any director, officer or controller of the prescribed institution, any other person purporting to act in any such capacity, or any person who is in any manner or to any extent responsible for the management of the affairs of the prescribed institution, or any person who is assisting in such management.
(3)
The court may, upon reviewing the application by the Bank, make an order specifying the amount of moneys the persons referred to in subsection (2) are liable to indemnify the prescribed institution.
(4)
The persons referred to in subsection (2) shall not be liable to so indemnify the prescribed institution if—
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(a)
the offence was committed without his knowledge, consent or connivance; and
(b)
he has taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence as he ought to have taken or exercised, having regard to the nature of his functions and to all the circumstances in which the offence was committed.
(5)
An amount ordered by the court under subsection (3) shall be applied—
(a)
firstly, to reimburse the Bank for all costs of the proceedings to seek the indemnity; and
(b)
secondly, to compensate the prescribed institution.
(6)
Civil proceedings under subsection (1) may be commenced at any time within six years from the date on which the person has been convicted of the offence under this Act or other written law or compounded under section 113.
Interim orders