Act A657
Companies (Amendment) Act 1986



Section 11. New section 133A.

The principal Act is amended by inserting, immediately after section 133, the following new section 133A:


"133A. Prohibition of loans to persons connected with directors.

(1) Subject to the provisions of this section, a company (other than an exempt private company) shall not -

(2) This section shall not apply -

(3) Nothing in this section shall operate to prevent the company from recovering the amount of any loan or the amount for which it becomes liable under any guarantee entered into or in respect of any security provided in contravention of this section.

(4) Where a company contravenes this section, any director who authorizes the making of any loan or the entering into of any guarantee contrary to this section shall be guilty of an offence against this Act.

Penalty: Ten thousand ringgit.".


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