Act 6 Borrowing Companies Act, 1969 PART II - ADMINISTRATION
Section 7. Conditions for application and granting licence.
(1) Before a public company carries on borrowing business it shall apply in writing to the Minister through the Central Bank for a licence and shall supply the Central Bank -
(a) a certified true copy of its memorandum and articles;
(b) a certified true copy of its certificate of incorporation;
(c) a certified true copy of its latest and duly audited balance sheet; and
(d) such other written information as may be required by the Central Bank,
certified by a director or the secretary of the company.
(2) Upon receiving an application under sub-section (1) the Central Bank shall consider the application and make a recommendation to the Minister stating whether or not a licence should be granted to the company and the conditions (if any) to be attached to the licence.
(3) Upon receiving the application and recommendation the Minister may grant a licence to the public company with or without conditions if the paid-up capital in cash of the public company (unimpaired by losses or otherwise) is not less than one million Malaysian dollars.
(4) Notwithstanding anything to the contrary in this section, a public company may carry on borrowing business without a licence if -
(a) (i) it is established for the purpose of financing economic or industrial development in which the Government of the Federation or the Government of a State has (in the opinion of the Minister) a material interest as a shareholder; and
(ii) it is exempted by the Minister on the recommendation of the Central Bank;
(b) it performs the functions of a discount house; or
(c) its debentures have been approved by the Central Bank subject to such conditions as the Central Bank may think fit to impose.
