Malaysia legislation
Section 37
Section 37
Disqualification of officer
(a)
he is a bankrupt, mentally disabled or of unsound mind;
(b)
that person, being a corporation, is the subject of any proceedings which may result in it being wound up or otherwise dissolved;
(c)
he is convicted of a criminal offence involving fraud and dishonesty or of any criminal offence for which he has been sentenced to imprisonment;
(d)
he is a council member; or
(e)
he is a person connected to a council member.
(2)
For the purposes of paragraph (1)(e), the person shall be deemed to be connected to a council member if he is—
(a)
a member of that council member’s family, including his spouse, parent, child including adopted child and stepchild, brother, sister and the spouse of his child, brother or sister; or
(b)
a corporation which is associated with that council member.
(3)
For the purposes of paragraph (2)(b), a corporation is associated with a council member if—
(a)
the corporation is accustomed or is under an obligation, whether formal or informal, or its directors are accustomed, to act in accordance with the directions, instructions or wishes of that council member; or
Labuan Foundations 31
(b)
that council member has a controlling interest in the corporation.
(4)
An officer of a Labuan foundation, shall, in the event that he ceases to qualify under this section, give notice in writing of that event to the Labuan foundation and the Authority within seven days after the occurrence of that event.
(5)
The Authority may issue a direction that a person who falls within any of the instances under subsection (1) be disqualified from acting as an officer of a Labuan foundation.
Duties of officers