Malaysia legislation
Section 5
Section 5
(2)
Without prejudice to the generality of subsection (1), the board of directors shall—
(a)
ensure that the strategies pursued by the prescribed institution are consistent with its constituent documents and any specification made by the Bank pursuant to
Development Financial Institutions (Amendment)
11
subsection 28(1), and that the prescribed institution has the capacity and capability to manage such strategies;
(b)
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 prescribed institution and reasonable standards of fair dealing;
(c)
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 prescribed institution;
(d)
oversee the performance of the senior management in managing the business and affairs of the prescribed institution;
(e)
ensure that there is a reliable and transparent financial reporting process within the prescribed institution;
and
(f)
promote timely and effective communications between the prescribed institution and the Bank on matters affecting or that may affect the safety and soundness of the prescribed institution.
(3)
In carrying out its functions and duties under this section, the board of directors of a prescribed institution shall have regard to the interests of the customers and depositors of the prescribed institution.”.
New section 5a