Malaysia legislation
Section 12
Section 12
(1)
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)
has 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 Enactment, 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 its nominees on the Board of Directors of that holding or subsidiary company to request the Board of Directors to take disciplinary action against any officer or employee responsible for such irregularities with a view to termination of his employment; or
(iv)
take such action as the Minister may deem appropriate in the circumstances of the case.
(2)
The statutory body to which 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.
12
(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 severally liable for any loss or damage suffered or incurred by the State Government, the statutory body or the holding and subsidiary company to which the order relates.