Co-Operative Societies Act 1993 · Updated to 1 Apr 2015 · Part III · Duties and Privileges of Co-Operative Societies
19. Formation of subsidiaries
Feedback & supportNo co-operative society shall form, own, acquire or establish a subsidiary except with the prior written approval of the Commission.
co-operative society
“co-operative society” means an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise which is registered under this Act;
No co-operative society shall grant any Islamic financing or credit facility or give any guarantee or undertaking to such financing or facility or transfer of any money or asset in any form to its subsidiaries except with the prior written approval of the Commission.
Islamic financing
“Islamic financing” has the same meaning as defined in the Malaysia Co-operative Societies Commission Act 2007;
The Commission may, by a notice in writing, require any subsidiary of a co-operative society to comply with any requirement as imposed by this Act, regulations or orders or directives or guidelines.
Commission
“Commission” means the Malaysia Co-operative Societies Commission established under the Malaysia Co-operative Societies Commission Act 2007;
Any co-operative society or officer of the co-operative society who fails to comply with subsection (1) or (2) commits an offence and shall, on conviction—
conviction
“conviction” includes a finding of guilt and the proving of an offence; Co-operative Societies 11
in the case of a co-operative society, be liable to a fine not exceeding five hundred thousand ringgit and shall in addition, be liable to a daily fine of one hundred ringgit for each day during which the offence continues after conviction; or
in the case of officer of the co-operative society, to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding one year or to both and shall in addition, be liable to a daily fine of one hundred
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ringgit for each day during which the offence continues after conviction.