Banking and Financial Institutions Act 1989 · As enacted · Part II
Section 7
Official textFrom Laws of Malaysia Online, unchanged
The Minister may, on the recommendation of the Bank, revoke a licence granted to an institution under section 6 (4) if it appears to the Minister that—
Minister
"Minister" means the Minister for the time being charged with the responsibility for finance;
any of the criteria specified in the Second Schedule are not or have not been fulfilled, or may not be or may not have been fulfilled, in respect of the institution;
the institution has failed to comply with any obligation imposed upon it by or under this Act;
the institution has contravened any condition imposed under the licence, or any other provision of the licence, or any provision of this Act, or any provision of the Ordinance, regardless that there has been no prosecution for an offence in respect of such contravention;
licence
"licence" means a licence granted or deemed to be granted under section 6 (4);
the Bank has, either in connection with the application for the licence, or at any time after the grant of the licence, been provided with false, misleading or inaccurate information by or on behalf of the institution, or by or on behalf of any person who is or is to be a director, controller, or manager of the institution;
the interests of persons dealing with the institution or likely to deal with the institution, as depositors, or as its customers in any other respect, or as its creditors, or otherwise howsoever, are in any way threatened, whether by the manner in which the institution is conducting or proposes to conduct its affairs or for any other reason;
the institution has not transacted within Malaysia any business in respect of which it is licensed for any continuous period of six months, or for any periods aggregating nine months during a continuous period of twelve months;
the institution has ceased to carry on any one or more of the fields of business for which it is licensed;
a composition or arrangement with creditors has been made in respect of the institution;
arrangement
"arrangement" means an arrangement whether formal or informal, oral or written, express or implied;
a receiver or manager of the institution's undertaking has been appointed;
manager
"manager", in relation to an institution, means an officer of the institution by whatever name called, responsible for an office of the institution, or for a department or a division of such institution or of its office;
possession has been taken, by or on behalf of the holders of any debenture secured by a charge, of any property of the institution comprised in or subject to the charge; or
property
"property" means any movable or immovable property and includes— (a) any right, interest, title, claim, chose in action, power or privilege, whether present or future, or whether vested or contingent, in relation to any property, or which is otherwise of value; (b) any conveyance executed for conveying assigning, appointing, surrendering, or otherwise transferring or disposing of immovable property whereof the person executing the conveyance is proprietor or possessed or wherein he is entitled to a contingent right, either for the whole interest or for any less interest; (c) any security, including any stock, share, debenture and fund; (d) any negotiable instrument, including any bank note, bearer note, Treasury bill, dividend warrant, bill of exchange, promissory note, cheque and negotiable certificate of deposit; (e) any mortgage or charge, whether legal or equitable, guarantee, lien or pledge, whether actual or constructive, letter of hypothecation or trust receipt, indemnity, undertaking or other means of securing payment or discharge of a debt or liability, whether present or future, or whether vested or contingent; and (f) any other tangible or intangible property;
the institution has insufficient assets to meet its liabilities.
liabilities
"liabilities" includes debts, duties and obligations of every kind, whether present or future, or whether vested or contingent;
the...
The Minister shall revoke a licence granted to an institution under section 6 (4) if it appears to the Minister that—
a winding-up order has been made against it; or
a resolution for its voluntary winding-up has been passed.
Any institution dissatisfied with any decision of the Minister to revoke its licence under this section may, within fourteen days of the decision being communicated to it, appeal against such decision to the High Court which may—
uphold the decision of the Minister;
quash the decision of the Minister; or
substitute for the decision of the Minister, an order to restrict the licence under section 8 in the same manner and to the same extent as the Minister may restrict a licence under that section.
The Bank shall be entitled to be heard on an appeal under subsection (3).
Terms defined in s 2
arrangement
Defined · s 2"arrangement" means an arrangement whether formal or informal, oral or written, express or implied;
controller
Defined · s 2"controller", in relation to an institution, means a person who— (a) has an interest in more than fifty per centum of the shares of the institution; (b) has the power to appoint or cause to be appointed a majority of the directors of the institution; or (c) has the power to make or cause to be made, decisions in respect of the business or administration of the institution, and to give effect to such decisions or cause them to be given effect to, and the word "control" shall be construed accordingly;
director
Defined · s 2"director" includes any person who occupies the position of a director, by whatever name called and, in particular, without prejudice to the foregoing, in the case of— (a) a corporation, has the meaning assigned thereto by the Companies Act 1965; (b) a co-operative society, means a member of the board, or other governing body howsoever called, of the co-operative society; (c) a statutory body, means a member of the board, committee, council or other governing body, howsoever called, of the statutory body; (d) a partnership, means a partner; (e) a sole proprietorship, means the sole proprietor; and (f) any other body, association or group of persons, whether corporate or unincorporate, means any person having the direction and control of the management of its affairs or business;
liabilities
Defined · s 2"liabilities" includes debts, duties and obligations of every kind, whether present or future, or whether vested or contingent;
licence
Defined · s 2"licence" means a licence granted or deemed to be granted under section 6 (4);
manager
Defined · s 2"manager", in relation to an institution, means an officer of the institution by whatever name called, responsible for an office of the institution, or for a department or a division of such institution or of its office;
Minister
Defined · s 2"Minister" means the Minister for the time being charged with the responsibility for finance;
person
Defined · s 2"person" includes an individual, any corporation, statutory body, local authority, society, trade union, co-operative society, partnership and any other body, organization, association or group of persons, whether corporate or unincorporate;
property
Defined · s 2"property" means any movable or immovable property and includes— (a) any right, interest, title, claim, chose in action, power or privilege, whether present or future, or whether vested or contingent, in relation to any property, or which is otherwise of value; (b) any conveyance executed for conveying assigning, appointing, surrendering, or otherwise transferring or disposing of immovable property whereof the person executing the conveyance is proprietor or possessed or wherein he is entitled to a contingent right, either for the whole interest or for any less interest; (c) any security, including any stock, share, debenture and fund; (d) any negotiable instrument, including any bank note, bearer note, Treasury bill, dividend warrant, bill of exchange, promissory note, cheque and negotiable certificate of deposit; (e) any mortgage or charge, whether legal or equitable, guarantee, lien or pledge, whether actual or constructive, letter of hypothecation or trust receipt, indemnity, undertaking or other means of securing payment or discharge of a debt or liability, whether present or future, or whether vested or contingent; and (f) any other tangible or intangible property;
Part III
Scheduled Businesses and Representative Offices
Part IV
Restrictions Relating to Acceptance and Solicitation of, Advertisement for, and Inducement to Make, Deposits
Part V
Subsidiaries and Offices of Licensed Institutions
Part VI
Restrictions on Dealings of Licensed Institutions
Part VII
Financial Requirements and Duties of Licensed Institutions
Part VIII
Ownership, Control and Management of Licensed Institutions
Part IX
Restrictions on Business of Licensed Institutions
Part X
Powers of Supervision and Control Over Licensed Institutions
Part XI
Investigation, Search and Seizure
Part XII
Application of Parts X and XI to Non-Scheduled Institutions Engaged in Provision of Finance
Part XIII
Information and Secrecy
Part XIV
Offences
Part XV