Section 56

No person shall be appointed or elected, or accept appointment or election, as a director, manager, secretary, or other officer concerned in the management, of a licensed institution—

if he is a bankrupt, has suspended payments, or has compounded with his creditors, whether within or outside Malaysia;

without prejudice to paragraph (c), if a charge for a criminal offence/under any written law punishable with imprisonment for one year or more, whether by itself, or in lieu of, or in addition to, a fine, has been proved against him in any court within or outside Malaysia;

if a charge for any offence under this Act has been proved against him;

if there has been made against him any order of detention, supervision, restricted residence, banishment or deportation, or if there has been imposed on him any form of restriction or supervision by bond or otherwise, under any law relating to prevention of crime, or to preventive detention for prevention of crime or drug trafficking, or to restricted residence, or to banishment or immigration; or

if he has been a director of, or directly concerned in the management of, any corporation which is being or has been wound up by a court or other authority competent to do so within or outside Malaysia, or of any licensed institution, the licence of which has been revoked under this Act.

Where a person is subject to the disqualification under subsection (1) (e), he may, with the written concurrence of the institution in which he is to be appointed or elected, apply to the Minister in writing to exempt him from the disqualification thereunder, and the Minister may, on the recommendation of the Bank, grant such exemption subject to such conditions as the Minister may, on the recommendation of the Bank, deem fit to impose.

Where a person who is a director, manager, secretary, or the officer concerned in the management, of a licensed institution, becomes subject to any of the disqualifications mentioned in subsection (1), he shall immediately thereupon cease to hold office and act as such, and the institution concerned shall immediately thereupon terminate his appointment in such capacity.

During the pendency of any criminal proceedings in any court for any offence as is referred to in subsection (1) (b) or (c) against any person who is a director, manager, secretary, or other officer concerned in the management of a licensed institution, such person shall not act in such capacity, or hold any other office, or act in any other capacity, in that licensed institution, or in any manner, whether directly or indirectly, be concerned with, or take part or engage in, any activity, affairs or business whatsoever of or in relation to that licensed institution, except as may be authorised by the Bank, subject to such conditions as the Bank may impose.

For the purpose of subsection (4), criminal proceedings referred to therein shall be deemed to be pending from the date that the accused person is first charged in court for the offence until the date of the final conclusion of the proceedings, whether in the court of original jurisdiction or, in the event of any appeal by any party, in the court of final appellate jurisdiction.