Banking and Financial Institutions Act 1989 · As enacted · Part X · Powers of Supervision and Control Over Licensed Institutions
Section 77
Official textFrom Laws of Malaysia Online, unchanged
Notwithstanding anything in any written law or the constituent documents of a licensed institution, where the Bank, or an appointed person, has, pursuant to an order under section 73(2)(a), assumed control of the licensed institution and the paid-up capital of such institution is lost or unrepresented by available assets, the Bank or the appointed person, as the case may be, may apply to the High Court for an order to reduce the share capital of such licensed institution by cancelling any portion of its paid-up capital which is lost or unrepresented by available assets.
constituent documents
"constituent documents", in relation to an institution, means the statute, charter, memorandum of association and articles of association, rules and by-laws, partnership agreement, or other instrument, under or by which the institution is established and its governing and administrative structure and the scope of its functions, business, powers and duties are set out, whether contained in one or more documents;
Where the High Court makes an order under subsection (1) to reduce the share capital of a licensed institution, the Court may—
share
"share", in relation to a corporation, means an issued share of the corporation and includes stock except where a distinction between stock and share is expressed or implied;
on an application by the Bank, or the appointed person, as the case may be; and
if, on the expiry of thirty days from the date of any call made by the licensed institution on its members to pay on their respective shares, payment on any such shares has not been made, also order that such shares for which payment has not been made be cancelled accordingly.
Where the share capital of a licensed institution is reduced pursuant to subsection (1), or any of its shares is cancelled pursuant to subsection (2), the Bank, or the appointed person, as the case may be, may cause the constituent documents of the institution to be altered accordingly.
licensed institution
"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
The powers conferred on the Bank and the appointed person under the foregoing provisions of this section shall be in addition to any powers exercisable under section 64 (1) of the Companies Act 1965, and where an application is made to the High Court under subsection (1)—
the High Court may exercise any of the powers conferred on it under section 64 of the Companies Act 1965 in relation to an application for confirmation referred to therein; and
subsections (9) and (10) of the said section 64 shall apply in relation thereto.
Terms defined in s 2
constituent documents
Defined · s 2"constituent documents", in relation to an institution, means the statute, charter, memorandum of association and articles of association, rules and by-laws, partnership agreement, or other instrument, under or by which the institution is established and its governing and administrative structure and the scope of its functions, business, powers and duties are set out, whether contained in one or more documents;
licensed institution
Defined · s 2"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
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;
share
Defined · s 2"share", in relation to a corporation, means an issued share of the corporation and includes stock except where a distinction between stock and share is expressed or implied;
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