In forceUpdated to 6 Oct 2023Read it in Bahasa Malaysia

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Development Financial Institutions Act 2002 · Updated to 6 Oct 2023 · Part VIII · Examination and Investigation

106G. Civil action to seek compensation

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(1)

Where any person—

(a)

has been convicted of an offence under this Act or under any other written law; or

(b)

has had any offence committed by him compounded under section 113, and such offence has resulted in, or caused, or subsequent to its commission, results in, or causes, any loss or damage of any nature or in any form to a prescribed institution, the Bank may institute civil proceedings in court for the purpose of seeking indemnity from the persons referred to in subsection (2).

(2)

The following persons shall be jointly and severally liable to indemnify the prescribed institution in full for any loss or damage to the prescribed institution:

(a)

the person convicted of the offence, or the person against whom the offence has been compounded under section 113;

and

(b)

any director, officer or controller of the prescribed institution, any other person purporting to act in any such capacity, or any person who is in any manner or to any extent responsible for the management of the affairs of the prescribed institution, or any person who is assisting in such management.

(3)

The court may, upon reviewing the application by the Bank, make an order specifying the amount of moneys the persons referred to in subsection (2) are liable to indemnify the prescribed institution.

(4)

The persons referred to in subsection (2) shall not be liable to so indemnify the prescribed institution if—

Development Financial Institutions 129

(a)

the offence was committed without his knowledge, consent or connivance; and

(b)

he has taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence as he ought to have taken or exercised, having regard to the nature of his functions and to all the circumstances in which the offence was committed.

(5)

An amount ordered by the court under subsection (3) shall be applied—

(a)

firstly, to reimburse the Bank for all costs of the proceedings to seek the indemnity; and

(b)

secondly, to compensate the prescribed institution.

(6)

Civil proceedings under subsection (1) may be commenced at any time within six years from the date on which the person has been convicted of the offence under this Act or other written law or compounded under section 113.

Terms defined in s 3

Bank
Defined · s 3
“Bank” means the Central Bank of Malaysia established under the *Central Bank of Malaysia Act 2009;
Open s 3
controller
Defined · s 3
“controller”, in relation to an institution, means a person who— (a) has an interest in more than fifty per cent 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; (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; or (d) in accordance with whose directions, instructions or wishes the directors, chief executive officer or senior officers of the institution are accustomed or under obligation, whether formal or informal, to act, and the word “control” shall be construed accordingly;
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development
Defined · s 3
“development” includes the commencement of any new industrial, agricultural, commercial or other economic venture or the expansion or improvement of any such existing venture;
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director
Defined · s 3
“director” includes any person who occupies the position of a director, and includes a person in accordance with whose directions and instructions the directors or officers are accustomed to act and an Development Financial Institutions 19 alternate or substitute director, and without prejudice to the foregoing, in the case of— (a) a co-operative society, means a member of the board, or other governing body, of the co-operative society; (b) a statutory body, means a member of the board, committee, council or other governing body of the statutory body; (c) a partnership, means a partner; (d) a sole proprietorship, means the sole proprietor; and (e) any other body, association or group of persons, whether corporate or unincorporate, means a person having the direction and control of the management of its business or affairs;
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officer
Defined · s 3
“officer”, in relation to an institution, means any of its employees and includes its Chief Executive Officer;
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person
Defined · s 3
“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;
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prescribed institution
Defined · s 3
“prescribed institution” means a development financial institution which is prescribed by the Minister under subsection 2(1);
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Report

Read on from s 106H

Part IX

Miscellaneous

Read on from Part IX

106G. Civil action to seek compensation

Terms defined in s 3

Miscellaneous

Schedules