Malaysia legislation
Section 11
Section 11
(a)
if he is not an approved auditor;
(b)
if he is indebted to the company or to a company which is deemed to be related to that company by virtue of section 4 in an amount exceeding twenty thousand ringgit or an equivalent amount in any other currency;
(c)
if he is —
(i)
an officer of the company;
32 Laws of Malaysia ACT 441
(ii)
a partner, employer or employee of an officer of the company;
(iii)
a partner, or employee of an employee of an officer of the company;
(iv)
a spouse of an officer of the company;
(v)
a spouse of an employee of an officer of the company;
or
(vi)
a shareholder, or the spouse of a shareholder, of a corporation whose employee is an officer of the company; or
(d)
if he is responsible for, or if he is the partner, employer or employee of a person responsible for, the keeping of the register of members or the register of holders of debentures of the company.
(2)
For the purposes of subsection (1), a person shall be deemed to be an officer of a Labuan company if he is an officer of a company that is deemed to be related to the Labuan company by virtue of section 4 or he has, at any time within the preceding period of twelve months, been an officer or promoter of the Labuan company or of the other company.
(3)
For the purposes of this section, a person shall not be deemed to be an officer by reason only of his having been appointed as auditor of a company.
(4)
No person shall appoint a person as auditor of a Labuan company unless the person to be appointed auditor has, prior to such appointment, consented in writing to act as such auditor.
(5)
The Minister may make regulations requiring approved auditors to insure against their liabilities as auditors of Labuan companies.
Labuan Companies 33
(6)
If default is made in complying with this section, the person who is in default commits an offence under this Act.
Penalty: One hundred thousand ringgit.
Approved liquidator