Malaysia legislation
Section 12
of Statutory Bodies (Financial and Accounting Procedure) Ordinance, 1995
Section 12
(2)
The Minister or the State Financial Authority may require the Chief Executive Officer of a statutory body to furnish to him such explanations or clarifications as he may deem necessary on the audited statement of accounts of any holding or subsidiary or related company of that statutory body.
(3)
The Minister may direct a Chief Executive Officer of a statutory body to furnish to him for inspection by him or the State
Financial Authority any of the financial statements or accounting records of a holding or subsidiary or related company of that statutory body.
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Power of Minister to wind up holding or subsidiary companies or replace or remove nominees or employees 13.—
Where the Minister is of the opinion that any holding or subsidiary company of a statutory body—
(a)
is insolvent or is unable to pay its debts;
(b)
there have been irregularities in the management of its affairs; or
(c)
has failed to submit its accounts for auditing in accordance with the provisions of the Companies Act 1965 [Act 125] or with the requirements of this Ordinance, the Minister may by Order direct the statutory body—
(i)
to take steps to wind up that holding or subsidiary company;
(ii)
to replace or remove any of its nominees on the Board of Directors of that holding or subsidiary company, responsible for the irregularities;
(iii)
to require the removal or termination of any officer or employee of that holding or subsidiary company responsible for such irregularities; or
(iv)
take such action as the Minister may deem appropriate in the circumstances of the case.
(2)
The statutory body to whom an Order is issued by the
Minister pursuant to subsection (1) shall comply with the directions contained in the Order as soon as practicable.
(3)
The statutory body shall exercise all voting rights attached to the shares which it holds in the holding or subsidiary company concerned, to ensure that the terms or requirements of the Order issued by the Minister are complied with.
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(4)
If a statutory body shall fail to comply with such Order, the
Chief Executive Officer and each and every member of the statutory body shall be held jointly and severely liable for any loss or damage suffered or incurred by the Government, statutory body or by the holding and subsidiary company to which the Order relates.