Section 71. Disqualification of director or employee.
(1) No licensee, and no controller of a licensee, shall appoint a person and no person shall accept the appointment as director, chief executive officer, manager, secretary or other employee concerned in its management or the management of its offices-
(a) if that person has been adjudged a bankrupt, or has suspended payments, or has compounded with his creditors, whether in or outside Malaysia;
(b) without prejudice to paragraph (c), if a charge for a criminal offence under any written law involving fraud or dishonesty punishable with imprisonment for one year or more, whether by itself, or in lieu of, or in addition to, a fine, has been proved against that person in any court in or outside Malaysia;
(c) if a charge for an offence under this Act has been proved against that person;
(d) if there has been made against that person an order of detention, supervision, restricted residence, banishment or deportation, or if there has been imposed on him any form of restriction or supervision by bond or otherwise, under any law relating to prevention of crime, or to preventive detention for prevention of crime or drug trafficking, or to restricted residence, or to banishment or immigration; or
(e) if that person, other than the appointed person, has been a director, or directly concerned in the management, of-
(i) a corporation incorporated in or outside Malaysia which is being or has been wound up;
(ii) a licensee, the licence of which has been revoked under this Act, or in respect of which an order has been made under section 59; or
(iii) a licensed institution, the licence of which has been revoked under, or in respect of which an order has been made under section 73 of, the Banking and Financial Institutions Act 1989 [Act 372].
Penalty: Three million ringgit. Default penalty.
(2) A person subject to paragraph (1)(e), with the written concurrence of the licensee in which he is holding office or is to be appointed-
(a) in the case of a licensed insurer, may apply to the Minister in writing to exempt him from that paragraph, and the Minister, on the recommendation of the Bank, may grant such exemption, subject to such condition, as he thinks fit to impose; or
(b) in the case of a licensed insurance broker, licensed adjuster or licensed financial adviser, may apply to the Bank in writing to exempt him from that paragraph and the Bank may grant such exemption, subject to such condition, as it considers fit to impose.
[Am. Act A1247:s.20]
(3) During the pendency of any criminal proceedings in any court for an offence referred to in paragraph (1)(b) or (c) against a person holding office in a licensee, that person shall not act in that capacity, or hold any other office, or act in any other capacity, in any licensee or in any manner, directly or indirectly, be concerned with any business or affairs of any licensee unless authorized in writing by the Bank to such extent and subject to such condition as the Bank may impose.
Penalty: Three million ringgit. Default penalty.
(4) For the purpose of subsection (3), criminal proceedings shall be deemed to be pending from the date that the accused person is first charged in court for the offence until the date of the final conclusion of the proceedings, whether in a court of original jurisdiction or, in the event of an appeal by any party, in a court of final appellate jurisdiction.
(5) In this section, "licensed institution" has the meaning in the Banking and Financial Institutions Act 1989 [Act 372].