Malaysia legislation
Section 39
Section 39
Termination of membership
(2)
Where the Board proposes to terminate the membership of the member institution, the Corporation shall give written notice of its proposal to the member institution and shall afford the member institution an opportunity to make representations within five days from the date of the notice in respect of the proposal.
(3)
Where representations are received by the Corporation from the member institution, the Board shall consider the representations and shall make a determination to confirm or not to confirm the proposal to terminate the membership of the member institution.
(4)
Where the Board has confirmed its proposal to terminate the membership of the member institution, the Corporation shall—
(a)
immediately inform the Minister and Bank Negara
Malaysia in writing; and
Malaysia Deposit Insurance Corporation 55
(b)
issue a written notice of termination of membership to the member institution whose membership shall terminate on the expiration of the period specified in the notice.
(5)
(Deleted by Act A1505).
(6)
(Deleted by Act A1505).
(7)
Where, at any time after a notice of termination has been given to a member institution under subsection (4), the Corporation is satisfied that as the result of any action by the member institution, or any other person, the risks to depositors or takaful beneficiaries or insured persons or to the Corporation have been averted or substantially reduced, the Corporation may revoke its notice of termination and inform the Minister accordingly.
(8)
Any decision by the Corporation to terminate a membership or to revoke such termination shall be final and binding.
Effects of cancellation or termination