Islamic Financial Services Act 2013 · s 65

Suggest a correction

Tell us what is wrong in this text. We check every suggestion against the official version before we change anything.

What is wrong?Wrong or mistyped wordsWrong structure or numberingWrong title or detailsText that appears twice

What should change, and whyUp to 2,000 characters.The text as it should read (optional)

65.
Functions and duties of board of directors
(1) The business and affairs of an institution shall be managed under the direction and oversight of its board of directors, subject to this Act and any other written law which may be applicable to the institution.
(2) Without limiting the generality of subsection (1), the board of directors shall—
(a) set and oversee the implementation of business and risk objectives and strategies and in doing so shall have regard to the long term viability of the institution and reasonable standards of fair dealing;
(b) ensure and oversee the effective design and implementation of sound internal controls, compliance and risk management systems commensurate with the nature, scale and complexity of the business and structure of the institution;
(c) oversee the performance of the senior management in managing the business and affairs of the institution;
(d) ensure that there is a reliable and transparent financial reporting process within the institution;

Islamic Financial Services                              91
(e) promote timely and effective communications between the institution and the Bank on matters affecting or that may affect the safety and soundness of the institution;
and
(f) have due regard to any decision of the Shariah committee on any Shariah issue relating to the carrying on of business, affairs or activities of the institution.
(3) In carrying out its functions or duties under this Division—
(a) the board of directors of an institution shall have regard to the interests of, as the case may be, depositors, investment account holders and takaful participants of the institution or participants; and
(b) the board of directors of a licensed takaful operator shall, in the event of conflict between the interest of the takaful participants and the shareholders, give priority to the interest of the takaful participants.

Edit the text above. Up to 20,000 characters.Where you checked it (optional)A link to the official version, if you have one.

The text as we hold it

Open the official text

s 65Functions and duties of board of directors

(1)

The business and affairs of an institution shall be managed under the direction and oversight of its board of directors, subject to this Act and any other written law which may be applicable to the institution.

(2)

Without limiting the generality of subsection (1), the board of directors shall—

(a)

set and oversee the implementation of business and risk objectives and strategies and in doing so shall have regard to the long term viability of the institution and reasonable standards of fair dealing;

(b)

ensure and oversee the effective design and implementation of sound internal controls, compliance and risk management systems commensurate with the nature, scale and complexity of the business and structure of the institution;

(c)

oversee the performance of the senior management in managing the business and affairs of the institution;

(d)

ensure that there is a reliable and transparent financial reporting process within the institution;

Islamic Financial Services 91

(e)

promote timely and effective communications between the institution and the Bank on matters affecting or that may affect the safety and soundness of the institution;

and

(f)

have due regard to any decision of the Shariah committee on any Shariah issue relating to the carrying on of business, affairs or activities of the institution.

(3)

In carrying out its functions or duties under this Division—

(a)

the board of directors of an institution shall have regard to the interests of, as the case may be, depositors, investment account holders and takaful participants of the institution or participants; and

(b)

the board of directors of a licensed takaful operator shall, in the event of conflict between the interest of the takaful participants and the shareholders, give priority to the interest of the takaful participants.