Malaysia legislation

Section 5A

of *DEVELOPMENT FINANCIAL INSTITUTIONS ACT 2002

Section 5A

(a)

act in good faith in the best interests of the prescribed institution;

(b)

exercise reasonable care, skill and diligence with—

(i)

the knowledge, skill and experience which may reasonably be expected of a director having the same responsibilities; and

(ii)

any additional knowledge, skill and experience which the director has;

(c)

only exercise powers conferred on him for the purposes for which such powers are conferred;

Development Financial Institutions 27

(d)

exercise sound and independent judgment; and

(e)

comply with any standards specified by the Bank which are applicable to a director.

(2)

Subsection (1) has effect in addition to, and not in derogation of, any written law or rule of law relating to the duty or liability of a director.

(3)

Any director who contravenes paragraph (1)(c) commits an offence and shall on conviction be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.

Appointment of Chief Executive Officer and directors