INCORPORATION (STATE LEGISLATURES COMPETENCY) ACT 1962

for the performance of any functions of an authority of the Federal

Government by the corporation; and

for the executive authority of the Federal Government to extend to such corporation.

Additional duties and powers of a corporation 4.

In addition to the functions and duties imposed upon any corporation by the law establishing it, the corporation may undertake such other functions and duties and administer and expend such moneys for such purposes as the State or any statutory authority, after approval by the Federal Government, may assign to it and in so doing the corporation shall be deemed to be fulfilling the purposes of the law establishing the corporation.

Membership

Subject to subparagraph (1) the law establishing the corporation may provide for the appointment of any number of other members not exceeding nine:

Provided that where the other members exceed six in the case of appointments made before the coming into effect of this subparagraph such members shall continue to be members until their terms of appointment expire or for not longer than one year from the date of the coming into effect of this subparagraph, whichever period comes soonest.

A member of the corporation other than those mentioned in subparagraph

and any member appointed by virtue of his office, shall unless he sooner resigns or his appointment is revoked, hold office for a term not exceeding two years and shall be eligible for reappointment:

Provided that if a member resigns or his appointment is sooner revoked another person may be appointed to replace him for the remainder of the term of the member replaced.

Chairman 6.

The Chairman of the corporation shall not be the Chief Executive of the corporation.

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Disqualification of membership

a person who is of unsound mind or is otherwise incapable of performing his duties;

a bankrupt;

a person who has been found guilty of an offence involving fraud, dishonesty or moral turpitude.

A member of the corporation shall vacate his office if he fails to attend three consecutive meetings of the corporation without the permission in writing of the person charged with the responsibility for the general administration of the corporation or if he becomes disqualified under subparagraph (1).

Quorum and procedure of meetings

If on any question to be determined by the corporation there is an equality of votes, the person presiding at such meeting shall have a casting vote.

Subject to subparagraphs (1) and (2), the corporation may determine its own procedure.

Conflict of interest

Subparagraph (1) shall not apply to a member in respect of his interest in a company or other body to which he has been nominated by the corporation to be its representative and where such corporation or other body is under the control or partial control of the corporation.

Improper use of information 10.

An officer or servant of a corporation shall not make use of any information acquired by virtue of his position as an officer or servant of the corporation to gain directly or indirectly an improper advantage for himself or for any other person or to cause detriment to the corporation.

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Incorporation (State Legislatures Competency)

Establishment of the Fund 11.

There shall be established in respect of the corporation a Fund, hereinafter referred to as the “Fund”, to be administered and controlled by the corporation—

establish or promote the establishment or expansion of companies or other bodies to carry on activities either under the control or partial control of the corporation itself or independently;

give financial assistance to any company, other statutory authority, any body or person by the taking up of shares or debentures or by way of any loan, advance, grant or otherwise;

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purchase, underwrite or otherwise acquire any stock and shares in any public or private company; or

borrow money or enter into any guarantee involving financial liability.

Where the corporation exercises its power under subsubparagraph 1(a)

or where it already has control or partial control of a company or other body the members of the management of the company or other body shall comprise not less than one member or one officer of the corporation.

In giving any consent under subparagraph (1) the Minister of Finance may impose such terms and conditions as he may deem fit.

No statutory authority shall be established by a corporation either under the law establishing the corporation or under any other law.

A company or other bodies established by a corporation under subsubparagraph 1 (a) shall not borrow money without the prior written consent of the Minister of Finance.

Expenditure and preparation of estimates

.

Before the beginning of July each year the corporation shall submit to the Menteri Besar or Chief Minister an estimate of the expenses for the following year in such form and with such particulars as the Menteri Besar or Chief

Minister may require; and the Menteri Besar or Chief Minister shall before the beginning of September of each year notify the corporation of the amount authorized for each description of expenditure.

The corporation may at any time submit to the Menteri Besar or Chief

Minister a supplementary estimate for any one year and the Menteri Besar or

Chief Minister may allow the whole or any part of the additional expenditure include therein.

Keeping of accounts

The Minister of Finance may make regulations as may be necessary to accomplish the objective of subparagraph (1) and for ensuring proper financial management and control system and practices within corporations and in addition he may make regulations concerning—

Regulations made under subparagraph (2) may be made applicable to corporations generally or to any particular class or category of corporations or to any particular corporation.

Investigation of accounts

Such corporation shall afford such person access to its books, accounts and documents and shall give such information as may be required by the person to conduct the investigations:

Provided that the books, accounts and documents shall not be required to be produced at such times and at such places as shall interfere with the proper conduct of the normal daily business of the corporation.

Financial year and audited accounts

The accounts of the corporation shall be audited annually by the Auditor

General or other auditor appointed by the corporation with the approval of the

Minister of Finance.

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The corporation shall within 6 months after the end of each financial year have its accounts audited and transmitted to the Minister together with a copy of any observations made by the Auditor General or the auditor appointed under subparagraph (2) on any statement or on the accounts of the corporation and a copy of the annual report referred to in paragraph 19.

The Minister shall cause a copy of every such statement together with copy of any observations made by the Auditor General or the auditor appointed under subparagraph (2) on any statement or on the accounts of the corporation and a copy of the annual report referred to in subparagraph (3) and paragraph 19 to be laid before the Cabinet and the National Finance Council.

The Menteri Besar or Chief Minister shall cause a copy of every such statement together with a copy of any observations made by the Auditor General or the auditor appointed under subparagraph (2) on any statement or on the accounts of the corporation and a copy of the annual report referred to in subparagraph (3) and paragraph 19 to be laid on the table of the next meeting of the Legislature of the State.

Annual report

The corporation may, with the approval of the Minister after his consultation with the Menteri Besar or Chief Minister, make regulations for the better carrying out of the law establishing such corporation provided they are not inconsistent with this Schedule.

The law establishing the corporation may provide for the power of the

State Authority to make rules for any other purposes not inconsistent with this

Schedule.

State law may make other provisions