ACT 372 BANKING AND FINANCIAL INSTITUTIONS ACT 1989
PART VIII - OWNERSHIP, CONTROL AND MANAGEMENT OF LICENSED INSTITUTIONS
Section 46. Maximum permissible holdings.
(1) No person shall hold more than the following percentages of interests in shares of a licensed institution:
[Am. Act A954:s.24]
(a) in the case of an individual, ten per centum; and
(b) in the case of a person other than an individual, twenty per centum,
[Am. Act A954:s.24]
except where the Minister, on the recommendation of the Bank and on being satisfied that it would not be-
(A) prejudicial to the promotion of a sound financial structure in Malaysia; and
(B) contrary to the public interest to do so,
otherwise approves.
[Am. Act A954:s.24]
(1A) Subsection (1) shall not apply to any person who holds interests in shares of a licensed bank or licensed finance company pursuant to the provisions of the Malaysia Deposit Insurance Corporation Act 2005.
[Ins. Act A1256:s.5]
(2) For the purpose of paragraph (1) (a), where the person holding interests in shares of a licensed institution is a corporation in which-
[Am. Act A954:s.24]
(a) an individual;
(b) that individual's spouse; or
(c) that individual's child,
holds, or any two or more of the persons mentioned in paragraphs (a), (b) and (c) hold, severally or jointly, interests in shares of not less than seventy-five per centum of the shares of that corporation, such corporation shall be deemed to be an individual.
(3) For the purposes of this section, in computing the holding of a person the following shall be deemed to be the holding of such person and added on to his own holding:
(a) where a person is an individual, the holding of his or her spouse, child or family corporation;
(b) where a person is a co-operation, the holding of its related or associate corporations;
(c) where a person is a co-operative society, the holding of its subsidiaries as defined in section 2 of the Co-operatives Societies Act 1948, and of related or associate corporations of such subsidiaries; and
(d) the holding of persons acting in concert with such person.
(4) For the purposes of paragraph (3) (a), "family corporation" means a corporation in which-
(a) the individual;
(b) that individual's spouse; or
(c) that individual's child,
holds, or any two or more of the persons mentioned in paragraphs (a), (b) and (c) hold, severally or jointly, interests in shares of more than fifty per centum of the shares of the corporation.
(5) Any individual who holds ten or more than ten per centum interest in the shares of a licensed institution, or any person other than an individual who holds twenty or more than twenty per centum interest in the shares of a licensed institution, shall, prior to disposing of any interest in the shares of such institution, notify the Bank in writing of such intended disposal and shall continue to notify the Bank of any further intended disposal so long as the individual or other person holds not less than five per centum interest in the shares of the institution.
[Ins. Act A954:s.24]
(6) The Bank may, at any time by notice in writing, require any person to submit-
(a) any information or particulars of any share acquired or held directly or indirectly either for his own benefit or for any other person; or
(b) a statement of his current holding of interest in the shares of a licensed institution.
[Ins. Act A954:s.24]
(7) Any person who has been served with a notice under subsection (6) shall, within seven days of the receipt of such notice or such longer period as may be allowed by the Bank in any particular case, submit to the Bank all the necessary information and particulars or the statement, as the case may be, as may be required by the Bank and duly verified by a statutory declaration.