Malaysia legislation
Section 101
Section 101
Provisions in relation to assumption of control
(2)
Where control of a member institution has been assumed under paragraph 99(1)(c), the Corporation or the appointed person shall remain in control of the assets, liabilities, businesses and affairs of the member institution, and carry on the businesses and to manage the assets, liabilities and affairs of that institution in the name and on behalf of that institution including disposal of assets and transfer of liabilities, until the taking of control is terminated by the Corporation.
(3)
Throughout the period of control of a member institution under paragraph 99(1)(c), there shall be vested in the Corporation or in the appointed person all the powers of the member institution, and of its directors, under the constituent documents of that institution, or exercisable by the member institution or its directors under any law, or otherwise howsoever, regardless whether such powers are exercisable by resolution, special resolution or in any other manner whatsoever.
(4)
During the period of control of a member institution under paragraph 99(1)(c), no director of the member institution shall, either directly or indirectly, engage in any activity in relation to the member
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institution, except as may be required or authorized by the Corporation or the appointed person and no remuneration of whatever nature shall accrue or be payable to any director of the member institution, except such as may be approved in writing by the Corporation or the appointed person in relation to any activity required or authorized as aforesaid by the Corporation or the appointed person.
(5)
For the avoidance of doubt, it is hereby declared that an exercise of the power under paragraph 99(1)(c) shall not have the effect of conferring on, or vesting in, the Corporation or the appointed person any title to, or any beneficial interest in, any asset of the member institution.
(6)
Where the Corporation or the appointed person has assumed control of a member institution under paragraph 99(1)(c), the
Corporation or the appointed person—
(a)
in carrying on the businesses and managing the assets, liabilities, businesses or affairs of the member institution or in carrying out any transaction relating to the member institution or its assets, liabilities, businesses or affairs, including disposal of assets and transfer of liabilities, shall be deemed to be acting as the agent of the member institution; and
(b)
shall not, by reason of having assumed control of the member institution or any action taken by it, be held to have assumed or incurred any obligation or liability of the member institution for its own account.
(7)
Any person who fails to comply with subsection (1) or (4)
commits an offence and shall, on conviction, be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both, and shall, in addition, be liable to a daily fine not exceeding fifty thousand ringgit for every day the offence continues after conviction.
Malaysia Deposit Insurance Corporation 117
Power to reduce share capital and to cancel shares of member institution under paragraph 99(1)(c)