Development Financial Institutions Act 2002 · Updated to 6 Oct 2023 · Part III · Restrictions on Business
26. Direction in respect of subsidiary or material interest in corporations
Feedback & supportNotwithstanding any approval under subsection 25(1), the
Bank may, in the interest of a prescribed institution, direct the prescribed institution to—
Bank
“Bank” means the Central Bank of Malaysia established under the *Central Bank of Malaysia Act 2009;
rationalise the business of any of its subsidiaries;
transfer the business of any of its subsidiaries to another corporation, including the prescribed institution or any of its other subsidiaries;
wind up any of its subsidiaries; or
dispose of all or any of its interest in its subsidiary or corporation in which it holds a material interest.
In determining the interest of a prescribed institution under subsection (1), the Bank shall take into consideration matters that the
prescribed institution
“prescribed institution” means a development financial institution which is prescribed by the Minister under subsection 2(1);
Bank considers relevant including whether the activities of that subsidiary or corporation in which the prescribed institution holds a material interest—
subsidiary
“subsidiary” has the same meaning as in section 5 of the *Companies Act 1965;
is consistent with the business carried on by the prescribed institution; or
Development Financial Institutions 45
directly or indirectly affect the safety and soundness of the prescribed institution.
For the purposes of subsection (1), the prescribed institution shall comply with the Bank’s direction within such period as the Bank may specify.
specify
“specify” means specify in writing by way of standards or any other forms;
(Deleted by Act A1502).