Section 18
Restriction on borrowing powers of body corporate so long as guarantee outstanding
of Loans and Loan Guarantees Ordinance, 1999
—
So long as the Government shall continue to be liable under any guarantee given under this Ordinance in respect of any sums raised by a body corporate, the body corporate shall—
(a)
not, except with the written approval of the State financial authority upon consultation with the Minister, exercise any other power to borrow possessed by it or conferred on it by any other written law or by virtue of any rules, regulations, articles of association to which the body corporate is subject;
(b)
submit to the State financial authority its audited accounts, at such intervals as he may determine; and
(c)
furnish to the State financial authority, if so required by him in writing, all accounting records of the body corporate, for inspection by him or an approved company auditor appointed by him.
(2)
For the purpose of this section, “accounting records”
means—
(a)
the accounting and other records which the body corporate is required to keep or maintain under section 167(1) of the Companies Act 1965 [Act 125] or any other written laws; and
(b)
the accounting records which the body corporate is required by regulations made under section 24 to keep or maintain.
(3)
A body corporate and any of its officers or agents who contravenes any of the provisions of subsection (1) shall be guilty of an offence: Penalty, a fine not exceeding one hundred thousand ringgit or imprisonment for a term not exceeding four years or both such fine and imprisonment.