Malaysia legislation
Section 54
Section 54
(a)
in the course of performance of his duties as an auditor of a scheme, report to the management company—
(i)
any irregularity or undesirable practice in the administration of the scheme which has come to his knowledge; or
(ii)
any serious offence involving fraud or dishonesty has which been committed by the officers of the management company; and
(b)
submit a copy of such report to the Registrar if there is reasonable cause to believe that such report is or might be of material significance to the Registrar.
(2)
For the purposes of this section—
(a)
a report is of material significance to the Registrar if it deals with a matter which, because of its nature or potential financial impact, has caused or is likely to cause financial loss to the scheme or any of its interest holders or creditors; and
(b)
“a serious offence involving fraud or dishonesty” means an offence that is punishable by imprisonment for a term that is not less than two years or the value of the assets derived or likely to be derived or any loss suffered by the scheme, management company or interest holder from
68 Laws of Malaysia ACT 778
the commission of such offence exceeds two hundred and fifty thousand ringgit.
(3)
An auditor who contravenes this section commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding three million ringgit or to both.
Meetings of a Scheme
Requisition of meeting by interest holders