CO-OPERATIVE INSTITUTE (INCORPORATION) ACT 1968 (REVISED—2025)

This Act applies throughout Malaysia.

Interpretation

The Institute shall have perpetual succession and a common seal.

The Institute may sue and be sued in its name.

Subject to and for the purposes of this Act, the Institute may, upon such terms as it deems fit—

The common seal of the Institute shall be kept in the custody of the Director General and shall be used with the authority of the Board.

The common seal of the Institute shall be affixed to all diplomas and certificates and signed by—

The seal of the Institute shall be officially and judicially noticed.

Any document or instrument which, if executed by a person not being a body corporate, would not be required to be under seal may in like manner be executed by the Institute; and any such document or instrument may be executed on behalf of the

Institute by the Director General, or by any person generally or specially authorized in writing by the Board.

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Functions of the Institute

to provide a course in co-operative studies and such other courses of study and make such award of diplomas as the Institute deems fit;

to print or publish, or assist in the printing or publication of, books on co-operatives or any subject connected therewith;

to make such rules as may be necessary to regulate the responsibilities and control of officers and staff of the

Institute and to impose such fees payable in respect of any course of study as the Institute deems fit;

to carry out research on co-operative matters;

to provide consultancy services;

to conduct courses in co-operative studies and such other courses of study, jointly or in association, affiliation, collaboration or otherwise, with any higher educational institution or professional body, or any organization, within or outside Malaysia; and

to advise the Minister regarding matters related to training and education for co-operative societies.

Powers of the Institute

confer diplomas, certificates and equivalent qualifications upon persons who have followed courses of study conducted by the Institute and have satisfied such other requirements as may be determined by the Board or as may be prescribed;

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institute and award scholarships, bursaries, medals, prizes and other forms of distinctions, awards or assistance in respect of the training, education and knowledge based services provided by the Institute;

grant loans or financial assistance to deserving students on such terms and conditions as may be approved by the Board;

market or commercialize the services, research findings and products of the Institute;

demand and receive such fees as may from time to time be determined by the Board or as may be prescribed;

do any thing, whether or not incidental to the powers referred to in paragraphs (a), (b), (c), (d) and (e), which may be done for the enhancement of education, training, finance, administration, welfare and discipline in the

Institute; and

establish or promote the establishment of companies under the Companies Act 2016 [Act 777] to carry on or engage in any activity which has been planned or undertaken by the Institute with the approval of the Minister of

Finance.

a Chairman;

the Executive Chairman of the Malaysia Co-operative

Societies Commission as Deputy Chairman;

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the Director General of the Institute;

a representative of the Treasury;

a representative of the Ministry in charge of co-operative development;

a representative of the National Co-operative Organization of Malaysia Berhad (ANGKASA);

six persons representing the co-operative movement; and

three other persons who, in the opinion of the Minister, possess the qualification or experience in matters relating to the development, operation or well-being of the

Institute.

The members referred to in paragraphs (1)(a), (d), (e), (f),

A senior officer of the Institute shall be appointed by the

Board as Secretary to the Board but with no voting rights.

A member of the Board appointed under paragraphs (1)(a),

Where a member appointed under paragraphs (1)(a), (d), (e),

Subject to this Act, the Board may determine its own procedure.

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Disqualification from being a member of the Board

if there has been proved against him, or he has been convicted on a charge in respect of—

an offence involving fraud, dishonesty or moral turpitude;

if he becomes a bankrupt; or

if he has been found or declared to be of unsound mind or has otherwise become incapable of managing his affairs.

Temporary exercise of functions of Chairman

Where both the Chairman and the Deputy Chairman are for any reason unable to perform the functions of the Chairman or during any period of vacancy in the offices of the Chairman and Deputy Chairman, the Minister may appoint any member of the Board to perform the functions of the Chairman.

The Deputy Chairman or the member appointed under subsection (2), as the case may be, shall, during the period in which he is performing the functions of the Chairman under this section, be deemed to be the Chairman and shall have all the powers of the Chairman.

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Vacation of office

upon the death of the member;

upon the member resigning from such office by letter addressed to the Minister; or

upon the expiration or revocation of his appointment.

Revocation of appointment

if his conduct, whether in connection with his duties as a member of the Board or otherwise, has been such as to bring discredit to the Board or the Institute;

if he has become incapable of properly carrying out his duties as a member of the Board;

if there has been proved against him, or he has been convicted on, a charge in respect of—

an offence involving fraud, dishonesty or moral turpitude;

if he becomes a bankrupt;

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if he has been found or declared to be of unsound mind or has otherwise become incapable of managing his affairs; or

if he absents himself from three consecutive meetings of the

Board without obtaining leave in writing from the Chairman or, in the case of the Chairman, without the leave of the

Minister.

Notwithstanding subsection (1), the appointment of any member may at any time be revoked by the Minister without giving reasons for such revocation.

Board meetings

The quorum of the Board shall be seven.

If on any question to be determined by the Board there is an equality of votes, the Chairman shall have a casting vote.

The Board shall cause minutes of all its meetings to be maintained and kept in a proper form.

Any minutes made of meetings of the Board shall, if duly signed by the Chairman, be admissible in evidence in all legal proceedings without further proof and every meeting of the Board in respect of which minutes have been so made shall be deemed to have been duly convened and held and all members at the meeting to have been duly qualified to act.

Disclosure of interest

any interest in any company or undertaking with which the Board proposes to enter into a contract; or

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any interest in any such contract or in any matter under discussion by the Board, shall disclose to the Board the fact of his interest and its nature.

A disclosure under subsection (1) shall be recorded in the minutes of the Board and, unless specifically authorized by the

Chairman, such member shall take no part in any deliberation or decision of the Board relating to the contract or matter.

No act or proceedings of the Board shall be invalidated on the ground that any member of the Board has contravened this section.

Board may invite others to meetings

A person invited under subsection (1) may be paid such allowances as the Board may determine.

Allowances

a vacancy in the membership of, or a defect in the constitution of, the Board; or

an omission, a defect or an irregularity not affecting the merit of the case.

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Power of the Minister to give directions

The Minister may give to the Board directions of a general character, consistent with the provisions of this Act, relating to the performance of the functions and the exercise of the powers of the Board.

The Board shall give effect to all directions given under this section as soon as possible.

Study Committee

The Study Committee shall include the following persons:

A senior officer of the Institute shall be appointed as the

Secretary to the Study Committee.

Subject to any directions given by the Institute, the Study

Committee shall determine its own procedure.

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The Chairman of the Study Committee may invite any other person to attend the meetings of the Study Committee to advise on matters relating to any course of study as the Study

Committee thinks fit.

Power of the Board to establish other committees

The Director General shall hold office for a period not exceeding three years and shall be eligible for reappointment.

The Board shall vest in the Director General such powers and shall impose upon him such duties as the Board may determine.

Appointment of officers and staff

The Deputies Director General shall be subject to the direction and control of the Director General and may perform all the duties of the Director General under this Act.

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Branch of the Institute

The Board shall appoint in respect of a branch, a Branch

Director who shall be the principal executive, administrative and academic officer of the branch, and he shall perform his functions and discharge his duties under the direction and control of the

Director General.

into which shall be paid all sums received by the Institute, whether by way of contributions, grants, fees, borrowing or otherwise;

from which shall be paid such outgoings as are directed by this Act to be paid out of the Fund; and

into which shall be paid sums received from the

Co-operative Societies Education Trust Fund.

Parliament may from time to time make grants to the

Institute.

Reserve Fund

Subject to subsection (3), the payment into and out of the

Reserve Fund shall be determined by the Board.

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The Reserve Fund shall not be applied otherwise than for the purposes of the Institute.

Contributory Provident Fund

Any property or money accepted by the Institute under subsection (1) shall, subject to the terms and conditions on which the property or money is given and accepted, be applied by the

Board for all or any of the purposes of the Institute in accordance with this Act.

A register shall be kept of all properties and moneys accepted by the Board under subsection (1), including the names of the donors and any special conditions on which the properties and moneys may have been given.

All properties and moneys given and accepted for any specific purposes shall be applied and administered in accordance with the purposes for which the properties and moneys may be given and accepted and shall be separately accounted for.

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Borrowing powers

Notwithstanding subsection (1), the Institute shall not invest in securities issued or registered, or other property situated, outside

Malaysia except with the approval of the Treasury.

Annual estimates

A copy of the estimate shall be sent to each member of the Board not less than fourteen days prior to the meeting before which the estimate is to be laid.

Accounts and audit

The accounts of the Institute shall be audited annually by the Auditor General or by an auditor being an approved company auditor within the meaning of the Companies Act 2016 appointed by the Board.

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After the end of each financial year, as soon as the accounts of the Institute have been audited, the Institute shall cause a copy of the statement of accounts to be submitted to the Minister, together with a copy of any observations made by the Auditor

General or other auditor appointed under subsection (2) on any statement or on the accounts of the Institute.

The Minister shall cause a copy of every such statement and observations to be laid before each House of Parliament.

Annual report

The Minister shall cause a copy of every such report to be laid before each House of Parliament.

Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding six months or to both.

Civil proceedings

the Board;

a member of the Board;

the Institute;

any officer or staff of the Institute; or

any persons lawfully acting on behalf of the Institute, for any act or omission done or omitted in good faith in the exercise or discharge of its or his powers or duties under this

Act on a reasonable belief that it was necessary for the purpose intended to be served thereby.

Power of Board to make rules and guidelines

In particular, and without prejudice to the generality of subsection (1), such rules and guidelines may provide for all or any of the following matters:

providing for the discipline of the students of the

Institute, including prescribing the disciplinary offences, disciplinary punishments and the procedures for disciplinary proceedings; and

on any matter as may be expedient or necessary for the better carrying into effect of the provisions of this Act.

Vesting of property, etc.

All rights and liabilities which immediately before the commencement of this Act were the rights and liabilities of the

Co-operative College of Malaya shall, upon the commencement of this Act, be the rights and liabilities of the College.

Saving