Malaysia legislation
Section 21
Section 21
(a)
any of its directors, officers or employees or other persons being persons receiving remuneration from it (other than accountants, advocates and solicitors, architects, estate agents, doctors and any other persons receiving remuneration from it in respect of their professional services);
(b)
any firm in which any of its directors, officers or employees is interested as partner, manager, agent or guarantor;
(c)
any corporation in which any of its officers or employees is a director, manager, agent or guarantor, or any corporation in the shares of which any of its officers or employees has any material interest as determined by the Central
Bank;
(d)
any corporation in which any of its directors (not being an executive director, he being within the ambit of paragraph
(c)
pursuant to subsection (3)) is a member, director, manager, agent or guarantor, or any corporation in the shares of which any such director of the licensed finance company has any interest whatsoever directly or indirectly;
or
(e)
any individual for whom any of its directors, officers or employees is a guarantor.
9
Finance (Banking and Financial Institutions)
(2)
A licensed finance company may grant to any of its officers or employees loans which are provided under its appropriate scheme of service and, where the licensed finance company is satisfied that special or compassionate circumstances exist, a loan not exceeding at any one time six months’
remuneration of that officer or employee on such terms and conditions as the licensed finance company thinks fit.
(3)
The provisions of paragraph (1)(c) and of subsection
(2)
shall also apply to the executive directors of licensed finance company.
(4)
The provisions of paragraph (1)(d) shall not apply to the granting of advances, loans or credit facilities by a licensed finance company to—
(a)
a corporation which is listed on a recognized stock exchange and in the shares of which no director of that licensed finance company has, directly or indirectly, any material interest as determined by the Central Bank;
and
(b)
a public company in which a director of that licensed finance company has no interest in his personal capacity, as determined by the Central Bank:
Provided that for the purposes of this subsection the director concerned is not an executive director of that licensed finance company.
(5)
Any licensed finance company which has entered into any transaction prohibited under this section shall not later than 30 June 1988 or such further period as the Central Bank may specify in any particular case secure the repayment of such advance, loan or credit facility.
(6)
For the purposes of this section, “director”, “officer”
or “employee” includes a spouse, parent or child of a director, an officer or employee.”.
New section 21B