Malaysia legislation
Section 12
Section 12
The principal Act is amended by inserting after section 59
the following section:
“Civil liability of principal for acts of representative 59a. (1) A person who is authorized or engaged by a principal to act as its representative shall be deemed to be an agent of the principal when—
(a)
the agent engages in any conduct, makes any representation or acts within his authority; and
(b)
such conduct, representation or act is carried out in the course of the business for which the principal is licensed.
(2)
For the purposes of subsection (1), a principal shall not be entitled to rely on any arrangement, agreement or contract entered into—
(a)
between the principal and its representative; or
(b)
between the principal and its client, that operates to completely remove or exclude its obligation or liability as the principal of its representative.
(3)
A principal shall not be liable for the act of its representative if the representative has ceased to be a representative of the principal and the principal has taken all reasonable steps to inform, or bring to the knowledge of clients of the fact of such cessation.
(4)
For the purposes of this section, “principal” means a holder of a Capital Market Services Licence.”.
Deletion of section 89