Section 17 — LABUAN FINANCIAL SERVICES AUTHORITY ACT 1996

(a)

any share or interest in any Labuan financial institution;

(b)

any share or interest—

(i)

in any contract made with the Authority;

(ii)

in any work done for the Authority; or

(iii)

in any company or firm with which the Authority proposes to enter into a contract in respect of any undertaking; or

(c)

any beneficial interest in land proposed to be acquired, purchased, leased or otherwise dealt with by the

Authority, which he knows to be affected or is likely to be affected by any project, scheme or enterprise approved or proposed to be approved by the Authority, shall declare the nature and extent of his share or interest to the

Authority or the committee, as the case may be.

(2)

Subject to subsection (7), the declaration required to be made by a member under subsection (1) shall be made—

(a)

in the case of paragraph (1)(a), at the first meeting of the

Authority or committee held after he acquires such share or interest;

(b)

in the case of paragraphs (1)(b) and (c)—

(i)

at a meeting of the Authority or committee at which any question relating to the contract, acquisition, purchase, lease, dealing, project or scheme referred to in those paragraphs is first taken into consideration;

(ii)

if the member does not have any such share or interest as is referred to in subparagraph (i) at the date of the meeting mentioned in that subparagraph, at the next such meeting held after he acquires such share or interest; or

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(iii)

if a member acquires any share or interest in any contract with the Authority after it has been made, at the first meeting held after that member acquires such share or interest.

(3)

For the purposes of this section, a general notice given to the other members by a member to the effect that he is a shareholder or director of any specified company or firm and is to be regarded as interested in any contract which may, after the date of the notice, be made with or by that company or firm, shall be deemed to be a sufficient declaration of interest in relation to any contract so made.

(4)

A notice given under subsection (3) shall be of no effect unless it is given at a meeting of the Authority or the committee, as the case may be, or the member concerned takes reasonable steps to secure that it is brought up and read at the next meeting of the

Authority or the committee after it is given.

(5)

Every declaration made in pursuance of subsection (1) shall be recorded in the minutes of the meeting at which it was made or read.

(6)

No member of the Authority or committee shall—

(a)

take part in any deliberation (except by invitation of the

Authority or the committee, as the case may be) on any matter affecting any Labuan financial institution in which he has any share or interest, whether or not he has declared his share or interest, or in any decision relating thereto or in any matter incidental thereto; or

(b)

vote upon any resolution or question relating to any contract, acquisition, purchase, lease, dealing, project or scheme in which he has any share or interest, whether or not he has declared his share or interest, or take part in any deliberation (except by invitation of the Authority or the committee, as the case may be) or any decision relating thereto or any matter incidental thereto,

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and if he does so—

(aa) his vote shall not be counted; and

(bb) he shall not be counted in the quorum present at the meeting of such deliberation, resolution or question.

(7)

A member who, before his appointment as a member of the

Authority or a committee, has already acquired the share or interest referred to in subsection (1) shall declare the nature and extent of his share or interest to the Authority or committee, as the case may be, immediately upon his appointment by a general notice to be given to the Authority or the committee.

(8)

Any member of the Authority or a committee who fails to disclose his share or interest as provided under this section shall be guilty of an offence and shall on conviction be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding five years or to both.

Preservation of secrecy