Malaysia legislation
Section 4
Section 4
Section 31c of the principal Act is amended—
(a)
by substituting for subsection (2) the following subsection:
Securities Commission Malaysia (Amendment)
5
“(2) The Audit Oversight Board shall consist of the following members who shall be appointed by the Board:
(a)
a non-executive chairman;
(b)
an executive officer; and
(c)
five non-executive members.”;
(b)
by substituting for subsection (4) the following subsection:
“(4) The non-executive chairman and executive officer shall not—
(a)
be a full-time officer or controlling shareholder of any public interest entity or schedule fund, its related corporation or associate company;
(b)
have any share in any of the profits of an accounting or auditing firm, or any of its affiliate; and
(c)
receive payment from any accounting or auditing firm, or from any other person as may be specified by the Commission, other than fixed continuing payments under standard arrangements for retirement from an accounting or auditing firm subject to such conditions as the Commission may impose.”;
(c)
in subsection (6)—
(i)
by substituting for the word “two” the word
“three”; and
(ii)
by substituting for the words “a chartered accountant, a licensed accountant or an associate member”
the words “a chartered accountant or a licensed accountant”;
(d)
by inserting after subsection (6) the following subsection:
“(6a) Notwithstanding subsection (6), no member of the Audit Oversight Board shall—
(a)
be an approved company auditor under the
Companies Act 2016; or
(b)
be employed on a full-time or contractual basis, in any capacity, by a firm which—
(i)
acts as an auditor for any public interest entity or schedule fund; or
(ii)
prepares for or on behalf of any public interest entity or schedule fund, any report required by the
Companies Act 2016 to be prepared by an approved auditor, or any of the firm’s affiliates.”; and
(e)
in subsection (7), by substituting for the words “executive chairman” the words “executive officer”.
Amendment of section 31ea