Section 17 — BANK SIMPANAN NASIONAL BERHAD ACT 1997

(2)

Where the Bank fails to appoint an auditor under subsection (1) before the date specified thereunder, the Minister may appoint for the Bank an auditor and specify his remuneration and expenses, and the same shall be paid to such auditor by the

Bank.

(3)

If the Minister at any time considers it desirable that another auditor should act with the auditor appointed under subsection (1)

or (2), he may appoint another auditor and specify his remuneration and expenses, and the same shall be paid to such auditor by the

Bank.

(4)

The Bank shall not knowingly appoint as its auditor any person, and no person shall knowingly consent to be appointed as an auditor of the Bank by the Bank or by the Minister; if such person—

(a)

is not an approved company auditor;

(b)

has any interest in any form or of any description in the

Bank, including an interest in the shares of the Bank;

(c)

is a director, controller or officer of the Bank;

(d)

is indebted to the Bank or to any related corporation of the Bank;

(e)

is a partner, employer or employee of a director, controller or officer, of the Bank;

(f)

is a partner or employee of an employee of a director, controller or officer, of the Bank;

(g)

is a shareholder, or his spouse is a shareholder, of a corporation whose employee is an officer of the Bank;

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Bank Simpanan Nasional Berhad

(h)

is responsible, or 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 Bank; or

(i)

has been convicted of any offence under the Companies

Act 1965, or of any offence under any written law involving fraud or dishonesty:

Provided that the Minister may remove the disqualification under this paragraph which any auditor is subject to if the Minister is satisfied that it would not be contrary to the public interest to do so.

(5)

For the purposes of subsection (4), a person shall be deemed to be an officer of the Bank—

(a)

if he is an officer of a related corporation of the Bank;

or

(b)

except where the Minister, in the circumstances of the case, otherwise directs, if he has, at any time within the preceding period of twelve months, been an officer or promoter of the Bank or such related corporation.

(6)

A firm shall not knowingly consent to be appointed, and shall not knowingly act, as auditor for the Bank and shall not prepare, for or on behalf of the Bank, any report required by this

Act to be prepared by an auditor unless—

(a)

all the partners of the firm resident in Malaysia are approved company auditors and, where the firm is not registered as a firm under any law for the time being in force, a return showing the full names and addresses of all the partners of the firm has been lodged with the Central

Bank; and

(b)

no partner is disqualified under paragraphs (4)(b) to (4)(i), inclusive, from acting as the auditor of the Bank.

(7)

No person shall be appointed as auditor under this section unless he has prior to his appointment consented in writing to act as such auditor, and no firm shall be appointed as auditor under this section unless the firm has prior to the appointment consented in writing under the hand of at least one partner of the firm to act as such auditor.

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(8)

The appointment of a firm in the name of the firm as auditor under this section shall take effect and operate as an appointment as auditor of the Bank of the persons who are members of that firm at the time of the appointment.

(9)

For the purposes of this section, a person shall not be deemed to be an officer of the Bank or its related corporation by reason only of his having been appointed an auditor of the Bank or its related corporation.

(10)

Any person or firm appointed as an auditor for the Bank who, at any time after such appointment, becomes subject to any of the disqualifications mentioned in this section or in section 9

of the Companies Act 1965, shall immediately thereupon cease to be the auditor of the Bank and shall not thereafter act as its auditor or be required or permitted by the Bank to act as such.

(11)

Where the Bank fails to comply with subsection (1), (2)

or (3), it shall be guilty of an offence and shall on conviction be liable to a fine not exceeding one million ringgit and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.

(12)

Where the Bank is guilty of an offence under subsection (11), any person who at the time of the commission of the offence was a person responsible for the Bank shall also be guilty of that offence and shall on conviction be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding one year or to both and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.

(13)

Any person who fails to comply with subsection (4) or (6)

shall be guilty of an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both.

(14)

Any person or firm who fails to comply with subsection (7) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding one million ringgit and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.

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Bank Simpanan Nasional Berhad

(15)

Any person who fails to comply with subsection (10) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding three years or to both and, in the case of a continuing offence, to a further fine not exceeding three thousand ringgit for each day during which the offence continues after conviction.

Duties of auditor