Malaysia legislation
Section 10
Section 10
Amendment of section 8
(a)
by substituting for the shoulder note the following shoulder note:
“Cessation of office”;
(b)
by substituting for subsection (1) the following subsection:
“(1) Where—
(a)
a Chief Executive Officer or director of a prescribed institution becomes disqualified by virtue of subsection 7(1); or
(b)
a chairman, director, Chief Executive Officer or senior officer of a prescribed institution no longer complies with any of the criteria set out in the First Schedule, he shall immediately cease to hold office and cease to act in such capacity.”;
(c)
by inserting after subsection (1) the following subsections:
“(1a) The prescribed institution shall immediately—
(a)
in the case of paragraph (1)(a), terminate the appointment of such Chief Executive Officer or director; or
(b)
in the case of paragraph (1)(b), remove the chairman, director, Chief Executive Officer or senior officer from such office.
(1b)
Notwithstanding anything contained in any contract of service or any other agreement relating to his appointment, such Chief Executive Officer or director terminated under paragraph (1a)(a) shall not be entitled to claim any compensation for such termination.”;
(d)
by substituting for subsection (2) the following subsection:
“(2) Subject to section 123b and notwithstanding subsections (1) and (1a), the Bank, with the concurrence of the Minister, may direct the prescribed institution—
(a)
to terminate the appointment of the Chief
Executive Officer or director who becomes disqualified by virtue of subsection 7(1); or
(b)
to remove the Chief Executive Officer or director who no longer complies with any of the criteria as set out in the First Schedule, and the prescribed institution shall comply with such direction to terminate the appointment of that person in such capacity or remove that person from
Development Financial Institutions (Amendment)
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such office, as the case may be, and notwithstanding anything contained in any contract of service or any other agreement relating to his appointment, the
Chief Executive Officer or director terminated under paragraph (a) shall not be entitled to claim any compensation for such termination.”; and
(e)
by deleting subsection (4).
Amendment of section 10