Development Financial Institutions Act 2002 · Updated to 6 Oct 2023 · Part II · Management, Ownership and Control
5A. Duties of directors
Feedback & supportA director of a prescribed institution shall at all times—
director
“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;
act in good faith in the best interests of the prescribed institution;
exercise reasonable care, skill and diligence with—
the knowledge, skill and experience which may reasonably be expected of a director having the same responsibilities; and
any additional knowledge, skill and experience which the director has;
only exercise powers conferred on him for the purposes for which such powers are conferred;
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exercise sound and independent judgment; and
comply with any standards specified by the Bank which are applicable to a director.
Subsection (1) has effect in addition to, and not in derogation of, any written law or rule of law relating to the duty or liability of a director.
Any director who contravenes paragraph (1)(c) commits an offence and shall on conviction be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.