Section 54
Investment of funds
of Co-Operative Societies Act 1993
Subject to its by-laws, a co-operative society may invest its surplus funds in—
(a)
any securities issued by the Government of Malaysia, Bank
Negara Malaysia or any other securities approved by the
Commission; or
(b)
shares of any other co-operative society.
(2)
Unless otherwise provided in the regulations, no co-operative society shall invest its surplus funds in—
(a)
bonds or debentures of any other co-operative society;
(b)
the securities of any company or any body corporate registered in Malaysia, other than those specified in subsection (1);
(c)
its subsidiaries; or
(d)
any other manner as may be specified by the Commission.
(3)
Any co-operative society or officer of the co-operative society who fails to comply with subsection (2) commits an offence and shall, on conviction—
(a)
in the case of a co-operative society, be liable to a fine not exceeding one million ringgit; or
(b)
in the case of an officer of the co-operative society, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both.
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