ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART VI - ACCOUNTS AND AUDIT

DIVISION 1 - ACCOUNTS

Section 167A. System of internal control

Except as otherwise provided for in the listing requirement of a Stock Exchange in relation to companies whose shares are listed for quotation on the Stock Exchange, the directors of a public company or a subsidiary of a public company shall have in place a system of internal control that will provide a reasonable assurance that— (a) assets of the company are safeguarded against loss from unauthorized use or disposition; and (b) all transactions are properly authorized and that they are recorded as necessary to enable the preparation of true and fair profit and loss accounts and balance sheets and to give a proper account of the assets.    Penalty: Imprisonment of six months or ten thousand ringgit or both. [Ins. Act A1299 : s.18]