Section 8 — BANK SIMPANAN NASIONAL ACT 1974

(a)

the Chairman shall be appointed for a term not exceeding five years and shall be eligible for reappointment; and

12 Laws of Malaysia ACT 146

(b)

any other director (other than the Chief Executive) shall hold office for a term not exceeding three years and shall be eligible for reappointment.

(2)

Directors shall be paid by the Bank such salaries, fees or allowances as may be determined by the Minister.

(3)

During the temporary incapacity owing to illness or during the temporary absence from Malaysia of the Chairman, the Deputy Chairman may act as temporary Chairman, and if both the Chairman and the Deputy

Chairman are absent, the Minister may appoint one of the other directors to be temporary Chairman.

(4)

The Minister may at any time terminate the appointment of the

Chairman or any director who—

(a)

is guilty of serious misconduct in relation to his office;

(b)

is absent, except on leave or with the approval of the Minister, from more than three consecutive meetings of the Board;

(c)

fails to comply with his obligations under section 12; or

(d)

is, in the opinion of the Minister, unfit to remain as Chairman or director.

(5)

No person shall be appointed or remain as Chairman or director of the Bank if he—

(a)

is convicted by a court of law of an offence and sentenced to imprisonment for a term of not less than one year, or of any offences involving fraud or dishonesty and has not received a free pardon;

(b)

becomes of unsound mind or otherwise incapable of carrying out his duties; or

(c)

becomes a bankrupt or makes any arrangement or composition with his creditors.

(d)

(Deleted by Act A397).

Bank Simpanan Nasional 13

Appointment and duties of Chief Executive