Malaysia legislation
Section 8
Section 8
(a)
a
Chief
Executive
Officer or director of a prescribed institution becomes disqualified by virtue of subsection 7(1); or
(b)
a chairman, director, Chief Executive Officer or senior officer of a prescribed institution no longer complies with any of the criteria set out in the First Schedule, he shall immediately cease to hold office and cease to act in such capacity.
(1A)
The prescribed institution shall immediately—
(a)
in the case of paragraph (1)(a), terminate the appointment of such Chief Executive Officer or director; or
(b)
in the case of paragraph (1)(b), remove the chairman, director, Chief Executive Officer or senior officer from such office.
(1B)
Notwithstanding anything contained in any contract of service or any other agreement relating to his appointment, such Chief
Executive Officer or director terminated under paragraph (1A)(a) shall not be entitled to claim any compensation for such termination.
(2)
Subject to section 123B and notwithstanding subsections (1)
and (1A), the Bank, with the concurrence of the Minister, may direct the prescribed institution—
(a)
to terminate the appointment of the Chief Executive Officer or director who becomes disqualified by virtue of subsection 7(1); or
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(b)
to remove the Chief Executive Officer or director who no longer complies with any of the criteria as set out in the First
Schedule, and the prescribed institution shall comply with such direction to terminate the appointment of that person in such capacity or remove that person from such office, as the case may be, and notwithstanding anything contained in any contract of service or any other agreement relating to his appointment, the Chief Executive Officer or director terminated under paragraph (a) shall not be entitled to claim any compensation for such termination.
(3)
During the pendency of any criminal proceedings in any court for any offence referred to in paragraph 7(1)(b) or (c) against any person who is a Chief Executive Officer or director of a prescribed institution, such person shall not act in such capacity, or hold any other office, or act in any other capacity, in that prescribed institution, or in any manner, whether directly or indirectly, be concerned with, or take part or engage in, any activity, affairs or business of, or in relation to, that prescribed institution, except as may be authorized by the Bank, and subject to such conditions as the Bank may impose.
(4)
(Deleted by Act A1502).
(5)
For the purpose of subsection (3), criminal proceedings referred to in that subsection shall be deemed to be pending from the date that the accused person is first charged in court for the offence until the date of the final conclusion of the proceedings, whether in the court of original jurisdiction or, in the event of any appeal by any party, in the court of final appellate jurisdiction.
Exemption from disqualification