6. New section 5a

The principal Act is amended by inserting after section 5 the following section:

“Duties of directors 5a.  (1)  A director of a prescribed institution shall at all times—

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

only exercise powers conferred on him for the purposes for which such powers are conferred;

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.”.