Malaysia legislation
Section 54
Section 54
(a)
is carrying on its business in a manner detrimental to the interests of its stakeholders or the public generally;
(b)
is insolvent, or has become or is likely to become unable to meet all or any of its obligations, or is about to suspend payment to any extent;
(c)
has breached or contravened any provision of this Act, the
Central Bank of Malaysia Act 2009 or any written law, other than securities laws as defined in the Securities
Commission Act 1993 [Act 498], regardless that there has been no prosecution or other action in respect of the breach or contravention;
(d)
has failed to comply with any standards, notice, condition, specification, requirement, restriction or direction specified, issued or made under this Act, regardless that there has been no prosecution or other action in respect of such non-compliance;
(e)
is conducting an activity which is inconsistent with its constituent documents or with any specification made under subsection 28(1);
(f)
is committing or is about to commit an act, or is pursuing or is about to pursue any course of conduct, that is unsafe or unsound or has failed to commit an act or pursue a course of conduct that is necessary to maintain the safety and soundness of the prescribed institution;
(g)
has failed to manage its business or affairs in a manner that is consistent with sound risk management and good governance practices; or
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(h)
that has obtained an approval to carry on its business or activity in accordance with Shariah under—
(i)
paragraph 33B(1)(a), is carrying on or is about to carry on any part of its business, affairs or activities in a manner which is contrary to Shariah; or
(ii)
paragraph 33B(1)(b), is carrying on or is about to carry on any part of its Islamic financial business in a manner which is contrary to Shariah, the Bank may, by order in writing, exercise any one or more of the powers in subsection (2).
(2)
For the purpose of subsection (1), the Bank may—
(a)
require the prescribed institution to take any steps, or any action, or to do or not to do any act or thing in relation to the institution, or its business, or its directors or officers, which the Bank considers necessary and which it sets out in the order, within such time as may be set out in the order;
(b)
prohibit the prescribed institution from extending any further financing facility for such period as may be set out in the order, and make the prohibition subject to such exceptions, and impose such conditions in relation to the exceptions, as may be set out in the order, and, from time to time, by further order similarly made, extend the period;
(c)
notwithstanding anything in any written law, or any limitations contained in the constituent documents of the prescribed institution, for reasons to be recorded by it in writing, remove from office, with effect from such date as may be set out in the order, any officer of the prescribed institution;
(d)
notwithstanding anything in any written law, or any limitations contained in the constituent documents of the prescribed institution, and, in particular, notwithstanding
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any limitation as to the minimum or maximum number of directors, for reasons to be recorded by it in writing—
(i)
remove from office, with effect from such date as may be set out in the order, any director of the prescribed institution; or
(ii)
appoint any person as a director of the prescribed institution, and provide in the order for that person to be paid by the prescribed institution such remuneration as may be set out in the order; or
(e)
appoint a person to advise the prescribed institution in relation to the proper conduct of its business, and provide in the order for that person to be paid by the prescribed institution such remuneration as may be set out in the order.
(3)
Any prescribed institution that fails to comply with any requirement under paragraph (2)(a) or contravenes any prohibition under paragraph (2)(b), commits an offence and shall on conviction be liable to imprisonment for a term not exceeding ten years or to a fine not exceeding fifty million ringgit or to both.
(4)
Notwithstanding subsections (1) and (2), the powers of the Bank under paragraphs (2)(b), (c), (d) and (e) shall not be exercised without the prior concurrence of the Minister.
Action by the Minister