65. Functions and duties of board of directors

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;

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;

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

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

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;

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.

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

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.