*PERBADANAN KEMAJUAN FILEM NASIONAL MALAYSIA ACT 1981

This Act shall come into operation on such date or dates as the

Minister may, by notification in the Gazette, appoint and he may appoint different dates for different provisions and for different parts of Malaysia.

Interpretation

any documentary;

any animation film;

any film of cultural or educational value; or

any experimental film, whose duration does not exceed thirty minutes.

a Chairman and a Deputy Chairman to be appointed by the

Minister from amongst persons who, in his opinion, by reason of their knowledge and extensive experience, would be of substantial service to the film industry;

four members to be appointed by the Minister from amongst persons who are connected with the film and related industries and are not public officers;

the Secretary General of the Ministry charged with the responsibility for the development of the film industry, or his representative;

the Secretary General of the Ministry charged with the responsibility for finance, or his representative;

the Secretary General of the Ministry charged with the responsibility for information, or his representative; and

such other persons, being not more than three in number, as the Minister considers fit and proper persons to be members of the Perbadanan, to be appointed by the Minister.

A member of the Perbadanan appointed under paragraph (a), (b)

or (f) shall, unless his appointment is sooner revoked or he sooner resigns, hold office for such period not exceeding three years as the

Minister may determine and he shall be eligible for reappointment.

The members of the Perbadanan may be paid such remuneration or allowances as the Minister may determine.

The Schedule shall apply in respect of the Perbadanan and its members.

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Seal of the Perbadanan

All deeds, documents and other instruments requiring the seal of the Perbadanan shall be sealed accordingly in the presence of two members of the Perbadanan who shall sign every deed, document or instrument to which the seal is affixed; and such signing shall without further attestation be sufficient evidence that the seal was duly and properly affixed and that the same is the lawful seal of the

Perbadanan:

Provided that a deed, document or other instrument which if executed by a person not being a body corporate would not be required to be under seal may in like manner be executed by the

Perbadanan; and such deed, document or instrument may be executed on behalf of the Perbadanan by any of its officers or servants generally or specially authorised in writing so to act.

The seal of the Perbadanan shall be officially and judicially noticed.

Functions of the Perbadanan

to make recommendations to the Minister as to the policies, methods and measures to be adopted to promote, nurture and facilitate the development of the film industry;

to develop, and stimulate the growth and maintain the standards of, the film industry by various means, including the provision of research and advisory services;

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to regulate and co-ordinate the activities of persons and bodies relating to matters pertaining to the film industry;

generally to promote and assist, both inside and outside

Malaysia, in the development of the film industry;

to regulate and control the production, distribution and exhibition of films in Malaysia, and in relation thereto to provide for the issue of licences;

to manage and control the maintenance and operation of places and equipment belonging to the Perbadanan for the purposes of paragraph (2)(c);

to disseminate information on policies, programmes and achievements of the Government through the production of films; and

to record event coverage for archive purposes.

The Perbadanan shall have power to do all things expedient or reasonably necessary for or incidental to the discharge of its functions and in particular, but without prejudice to the generality of the foregoing, it shall have the power —

Without prejudice to subsection (1), the Perbadanan may, by an instrument in writing under its common seal, delegate to any other person or any body such of its functions and powers as may be necessary to be performed inside or outside Malaysia except the power to make regulations:

Provided that any such person or body shall not have control over the Fund and shall act in all respects in accordance with the directions of the Perbadanan.

Directions by the Minister

The Perbadanan shall furnish the Minister with such information with respect to its property and activities as he may from time to time require.

The appointment of the chief executive officer shall be with the prior approval of the Minister and the name by which he is designated shall be published in the Gazette.

If during any period the chief executive officer is for any reason unable to exercise the powers and perform the duties of his office, the Perbadanan may, with the prior approval of the Minister, appoint any other fit and proper person to so act.

Duties of chief executive officer

be responsible for putting into execution the policy decisions of the Perbadanan;

exercise supervision and control over all the other officers and servants of the Perbadanan; and

perform such duties and exercise such powers as may from time to time be determined or delegated by the Perbadanan or as the Chairman may direct.

Perbadanan to determine conditions of service of its officers and servants

The Perbadanan shall have power to formulate and regulate the procedure for the appointment and disciplining of its officers and servants.

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Employment of Government employees

Every person mentioned in subsection (1) who opts to serve as an employee of the Perbadanan shall be employed by the

Perbadanan on terms and conditions of service not less favourable than the terms and conditions of service to which he was entitled to immediately before the appointed date.

For the purpose of this section, “appointed date” means the date on which the option is given to the employees who before that date are in the employment or service of the Government in the

National Film Department.

Salaries, terms and conditions of service of Government employees to be taken into account

The terms and conditions to be drawn by the Perbadanan shall take into account the salaries and terms and conditions of service, including any accrued rights to leave, enjoyed by the persons while in the employment of the Government before opting into the service of the Perbadanan, and any such terms and conditions relating to the length of service with the Perbadanan shall provide for the recognition of service with the Government by the persons making the option as service with the Perbadanan.

Where any person in the service of the Perbadanan whose case does not fall within the scope of any pension or other schemes established under this section retires or dies whilst in the service of the Perbadanan or is discharged from such service, the Perbadanan may grant to him or to such other person or persons wholly or partly dependent on him, as the Perbadanan thinks fit, such allowance or gratuity as the Perbadanan may determine.

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Public servants for purposes of Penal Code

A committee may do all such things as may be necessary for the effective discharge of the functions and powers so delegated but shall be subject to the directions of the Perbadanan.

A committee shall consist of a chairman and not more than five other members who may be paid such remuneration or allowances as may be determined by the Perbadanan with the approval of the

Minister.

The Schedule shall mutatis mutandis apply in respect of a committee appointed under this section.

No person having interest to be appointed as member, officer or servant of the Perbadanan

any person, body, corporation or company carrying on or engaged in, or about to carry on or engage in, any of the activities or any combination thereof referred to in section 21; or

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any person, body, corporation or company with which the

Perbadanan proposes to enter into a contract or has entered into a subsisting contract.

Notwithstanding paragraph (1)(b), such person may be appointed as a member, an officer or a servant of the Perbadanan or as a member of a committee thereof if he has an interest, directly or indirectly, as a shareholder only of a company referred to in that subsection and provided that the holding of the shares in that company does not result in any controlling interest, directly or indirectly.

Prior to his being appointed as a member, an officer or servant of the Perbadanan or as a member of a committee thereof, every person shall disclose fully, in the case of a person who is to be appointed as a member of the Perbadanan, to the Minister, and, in the case of a person who is to be appointed as a member of a committee or as an officer or a servant of the Perbadanan, to the Perbadanan, whether he has any such interest as is referred to in subsection (1).

Where such member, officer or servant acquires any such interest after the coming into operation of this Act, he shall cease to be such member, officer or servant of the Perbadanan or a committee thereof, as the case may be, and his appointment shall be deemed to be revoked forthwith:

Provided that this subsection shall not apply where the member, officer or servant inherits or is bequeathed with such interest and he relinquishes or disposes of such interest within a period of three months of its being bequeathed and vesting in him and within that period reports in writing, in the case of a member of the Perbadanan, to the Minister and, in the case of a member of a committee or an officer or a servant, to the Perbadanan, the fact of such relinquishment or disposal.

For the purposes of this section, “indirect interest” shall include the having or acquiring of any such interest as is referred to in this section by a spouse or a natural or an adopted child (below twenty-one years of age) of a person or a member, an officer or a

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Nasional Malaysia servant of the Perbadanan or a member of a committee thereof, as the case may be.

Any person who contravenes any of the provisions of this section shall be guilty of an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding twenty-five thousand ringgit or to both.

Declaration of share or interest and disqualification

any share or interest —

in a contract or an arrangement made with the

Perbadanan;

any beneficial interest in immovable property proposed to be purchased or otherwise acquired or leased or otherwise dealt with by the Perbadanan, shall declare the nature and extent of his share or interest to the

Perbadanan or committee, as the case may be.

The declaration required to be made by a member under subsection (1) shall be made at the meeting of the Perbadanan or committee at which any question relating to such contract, arrangement, work, purchase or other acquisition or lease or other dealing is first taken into consideration or at the earliest opportunity after the acquisition of such share or interest.

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For the purposes of this section, a notice given to the other members by a member to the effect that he has such share or interest as is specified in subsection (1) and is to be regarded as interested in any such contract, arrangement, work, purchase or other acquisition or lease or other dealing which may, after the date of the notice, be made with, or be required to be carried out by, the company, firm or undertaking in question shall be deemed to be sufficient declaration of interest in relation thereto:

Provided that such notice shall be of no effect unless it is given at a meeting of the Perbadanan or committee or the member concerned takes all reasonable steps to ensure that it is brought up and read at the next meeting of the Perbadanan or committee after it is given.

Every declaration made in pursuance of this section shall be recorded in the minutes of the meeting at which it is made or read and shall have no effect until it is so recorded.

A member shall not vote upon any resolution or question relating to any such contract, arrangement, work, purchase or other acquisition, or lease or other dealing in which he has any share or interest whether or not he has declared the same, nor shall he take part in any deliberation (except on the invitation of the Perbadanan or committee) or decision relating thereto or to any matter incidental thereto, and if he shall do so his vote shall not be counted, nor shall he be counted in the quorum present at the meeting for the purposes of such resolution or question.

A member shall not be deemed to have a share or interest under this section by reason only of his being a shareholder in the company with which it is proposed that the Perbadanan shall enter into a contract or an arrangement unless he has a controlling interest in that company.

A member who contravenes any of the provisions of this section shall be guilty of an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding twenty-five thousand ringgit or to both.

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production and distribution; or

production and exhibition; or

distribution and exhibition, of films.

Subsection (1) shall not in any way be construed as preventing a person from engaging in only one of the activities of production, distribution or exhibition of films.

Activity or combination of activities to be licensed

An application for a licence shall be made on the prescribed form to the Perbadanan, and the licence may be issued on payment of the prescribed fees for the prescribed period and subject to such terms and conditions as may be imposed therein.

The Perbadanan may refuse to issue a licence without assigning any reason therefor or it may issue a licence subject to terms and conditions, and its decision in any case shall be final and conclusive and shall not be challenged, appealed against, reviewed, quashed or questioned in any court.

Grant of certificate of merit to short subject films

In this section, “certificate of merit” means a certificate issued by the Perbadanan for any short subject film to indicate that such film is of acceptable quality for film exhibition.

Restriction on partnership or company where person has controlling interest

For the purposes of this section, “indirect interest” shall include the having or acquiring of an interest in a partnership or company by a spouse or a natural or an adopted child (below twenty-one years of age) of such person and, where such person is a company, by any

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Nasional Malaysia member of the board of directors of the company or a spouse or a natural or an adopted child (below twenty-one years of age) of such member.

Person licensed to ascertain that film has come into possession, custody or control lawfully

In any prosecution for an offence under this section, it shall be presumed that the film came into the possession, custody or control of such person, his servant or agent unlawfully unless such person is able to prove that the film so came into possession, custody or control without his knowledge, consent or connivance or that of his servant or agent and that he exercised all due diligence to prevent the film so coming into possession, custody or control.

Imposition of film charges

Where a person who has been issued with a licence under section 22 is guilty of an offence, the licence shall be liable to be cancelled by the Perbadanan and subsection 22(3) shall apply in respect of any decision of the Perbadanan to cancel the licence.

Persons who shall be deemed to be guilty of offence

Any such officer shall be deemed to be a public servant within the meaning of the Penal Code.

In exercising any of the powers under this Part an officer shall, on demand, produce to the person against whom he is acting under this Act the authority issued to him by the Minister.

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Powers of arrest

When any person has been arrested under subsection (1) he shall thereafter be dealt with as provided by the Criminal Procedure

Code [Act 593].

Search with warrant

Any such officer may, if it is necessary so to do —

Any person who commits an offence under subsection (1)

shall, on conviction, be liable to a fine not exceeding three thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Power of investigations

Any authorized officer or a police officer not below the rank of

Inspector may, in relation to any investigation in respect of any offence under this Act or subsidiary legislation made thereunder, exercise the special powers in relation to police investigations given by the Criminal Procedure Code in any seizable case.

Conduct of prosecution

refuses any authorized officer or police officer access to any place;

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assaults, obstructs, hinders or delays any authorized officer or police officer in effecting any entrance which he is entitled to effect under this Act, or in the execution of any duty imposed or power conferred by this Act; or

refuses or neglects to give any information which may reasonably be required of him and which he has it in his power to give, shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding three thousand ringgit or to imprisonment for a term not exceeding one year or to both.

Compounding

Notwithstanding section 26L, on payment of the amount payable under subsection (1), the person reasonably suspected of having committed an offence, if in custody shall be discharged, and any thing seized shall be released without any further proceedings.

Forfeiture of things seized

An order for the forfeiture or for the release of any things seized in exercise of any power conferred under this Act shall be made by the Court before which the prosecution with regard thereto has been held and an order for the forfeiture of the things shall be

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Nasional Malaysia made if it is proved to the satisfaction of the Court that an offence under this Act or subsidiary legislation made thereunder has been committed and that the things were the subject matter of or were used in the commission of the offence notwithstanding that no person may have been convicted of such offence.

If there be no prosecution with regard to any things seized in exercise of any power conferred under this Act such things shall be taken and deemed to be forfeited at the expiration of one calendar month from the date of seizure unless a claim thereto is made before the date in the manner hereinafter set forth.

Any person asserting that he is the owner of such things and that they are not liable to forfeiture may personally or by his agent authorized in writing give written notice to any authorized officer or any police officer not below the rank of Inspector that he claims the same.

On receipt of such notice the authorized officer or police officer shall refer the claim to the chief executive officer who may, after such inquiry as may be necessary, direct that such things be released or forfeited or may direct the authorized officer or police officer to refer the matter to a court for decision.

The court to which the matter is referred shall issue a summons requiring the person asserting that he is the owner of the things and the person from whom they were seized to appear before it and upon his appearance or default to appear, due service of the summons being proved, the court shall proceed to the examination of the matter and on proof that an offence under this Act or subsidiary legislation made thereunder has been committed and that such things were the subject matter or were used in the commission of such offence shall order the same to be forfeited or may in the absence of such proof order their release.

All things forfeited or deemed to be forfeited shall be disposed of in accordance with the directions of the chief executive officer.

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Where any person is exempted from liability by reason only of the provisions of this section, the Perbadanan shall be liable only to the extent that it would be if such person were a member, an officer, or a servant or an agent of the Perbadanan or a member of a committee thereof.

Appearance in and conduct of civil proceedings by federal counsel

Any person or member, officer or servant who knowingly contravenes any of the provisions of subsection (1) shall be guilty of an offence and shall, on conviction, be liable to imprisonment for a term not exceeding two years or to a fine not exceeding five thousand ringgit or to both such imprisonment and fine.

For the avoidance of doubt, it is declared that subsection (1)

does not authorize the appointment of members, officers or servants of the Perbadanan except in so far as authorising the temporary appointment of such persons until appointed under this Act.

Act not to derogate from other laws

Without prejudice to the generality of the foregoing, the

Perbadanan may, with the approval of the Minister, in particular make regulations in respect of the following matters —