Section 44A
of Co-Operative Societies Act 1993
Section 44A
Every member of the Board or chief executive officer, if any, of a co-operative society who has in any manner whatsoever, whether directly or indirectly, any interest in a proposed Islamic financing or credit facility to be given to any person by such co-operative society shall as soon as practicable declare in writing the nature of his interest, to a duly constituted meeting of members of the Board, and the secretary of the co-operative society, if any, or other officers appointed by the co-operative society for that purpose, shall cause a copy of such declaration to be circulated immediately to every member of the Board regardless whether he was present or not at such meeting.
(2)
For the purpose of subsection (1), a general notice in writing served on each of the member of the Board of a co-operative society referred to in that subsection by a member of the Board of a co-operative society to the effect that he has an interest in an Islamic financing or credit facility which, after the date of the notice may be granted to that person shall be deemed to be sufficient declaration of interest in relation to an Islamic financing or credit facility so granted if—
(a)
it specifies the nature and extent of interest in that person;
or
40 Laws of Malaysia ACT 502
(b)
at the time the Islamic financing or credit facility is granted, his interest is not different in nature or greater in extent than is specified in the notice.
(3)
Any member of the Board or chief executive officer of a co-operative society who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding six months or to both.