BANK SIMPANAN NASIONAL ACT 1974

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 146 BANK SIMPANAN NASIONAL ACT 1974 As at 1 December 2011 2 BANK SIMPANAN NASIONAL ACT 1974 Date of Royal Assent … ………… Date of publication in the Gazette 30 July 1974 … … 22 August 1974 Latest amendment made by Act A1389 which came into operation on … … … … … …. … … 24 February 2011 PREVIOUS REPRINTS First Reprint ... Second Reprint Third Reprint ... ... ... ... ... ... ... … … … … … … 1997 2001 2006 3 LAWS OF MALAYSIA Act 146 BANK SIMPANAN NASIONAL ACT 1974 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title 2. Interpretation PART II ESTABLISHMENT, OBJECTS AND POWERS 3. Establishment and incorporation 4. Objects of the Bank 5. Powers of the Bank PART III CONSTITUTION OF THE BANK 6. Board of Directors 7. Alternate director 8. Terms of appointment of Chairman and directors 9. Appointment and duties of Chief Executive 10. Directions by the Minister 11. Meetings of the Board 4 Laws of Malaysia Section 11A. Committees of the Board 12. Disclosure of director’s interest in contract, etc. 13. Common seal PART IV OFFICERS AND EMPLOYEES OF THE BANK 14. Officers and employees 14A. Discipline 14B. Disciplinary committees 14C. Disciplinary Appeal Board 14D. Surcharge 15. Transfer of members of the public service to the Bank 16. Facilities for staff 17. Public servants PART V PROVISIONS RELATING TO THE CARRYING ON OF BUSINESS OF THE BANK 18. Transfer of powers, rights and privileges, assets and liabilities 19. Receipt and repayment of deposits and interest payable 20. Guarantee of the Government 21. Interest on loans and advances 22. Power to borrow 23. Borrowing by staff 24. Restriction on loans and advances 25. Investment of funds ACT 146 Bank Simpanan Nasional PART VI FINANCIAL PROVISIONS Section 26. Financial year 27. Annual estimates 28. Accounts and audit 29. General Reserve Fund 30. Profit and loss account, balance sheet and annual report PART VII GENERAL 31. Power to make rules and regulations 32. Secrecy 33. Power to appoint attorney 34. The Bank deemed a Malay or native 35. Attachment of deposits 36. Power to administer oath 37. Public Authorities Protection Act 38. Things done in anticipation of this Act 39. Compulsory acquisition of land PART VIII REPEAL AND TRANSITIONAL 40. Repeal and saving 41. Transfer of land and property 42. Transfer of funds 43. Existing contract 44. Continuance of criminal and civil proceedings 5 7 LAWS OF MALAYSIA Act 146 *BANK SIMPANAN NASIONAL ACT 1974 An Act to repeal the Post Office Savings Bank Act 1948 and to incorporate the Bank Simpanan Nasional to promote and mobilize savings, particularly from small savers, to encourage thrift, to provide means for savings by the general public, to provide for the transfer to and for vesting in the Bank of the functions, assets and liabilities of the Post Office Savings Bank and to make provisions for other matters connected therewith. [1 December 1974, P.U. (B) 611–A/1974] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: PART I PRELIMINARY Short title 1. This Act may be cited as the Bank Simpanan Nasional Act 1974. Interpretation 2. In this Act, unless the context otherwise requires— “appointed date” means the date on which this Act comes into force; “Bank” means the Bank Simpanan Nasional established under section 3; ______________________________________________________________ *NOTE—This Act will be repealed by Bank Simpanan Nasional Berhad Act 1997 [Act 571] when Act 571 comes into force. 8 Laws of Malaysia ACT 146 “Board” means the Board of Directors referred to in section 6; “Chairman” means the Chairman of the Board; “Chief Executive” means the Chief Executive appointed under section 9 and includes any person appointed to act as the Chief Executive; “director” means a member of the Board appointed under section 6 and includes the Chairman and alternate director; “giro service” means a current account service which permits account holders to issue payment instructions to the Bank and which permits the Bank to accept payments into the account of an account holder from any party; “interest” includes bonus and such other pecuniary benefits (by whatever name called) payable on deposits and other accounts with the Bank; “officer” includes the Chief Executive; “Post Office Savings Bank” means the Post Office Savings Bank established under the Post Office Savings Bank Act 1948 [Act 113]; “premium savings certificate” means a numbered savings certificate issued by the Bank for a deposit account on which no interest will be payable but which may or may not participate in periodical draws held by the Bank for the award of bonus payments by way of cash or otherwise; and “security” means debenture, stock and share in a public company or corporation, or bond of any government or of any body, corporate or unincorporate, and includes any right or option in respect thereof and any interest as defined in section 84 of the Companies Act 1965 [Act 125]. PART II ESTABLISHMENT, OBJECTS AND POWERS Establishment and incorporation 3. There is hereby established a savings bank by the name of “Bank Simpanan Nasional”, or in English, the “National Savings Bank”, which Bank Simpanan Nasional 9 shall be a body corporate with perpetual succession and with power to enter into contracts, to acquire, hold, dispose of or otherwise deal in movable and immovable property and to sue and be sued in its own name. Objects of the Bank 4. The principal objects of the Bank shall be— (a) to promote and mobilize savings, particularly from small savers, and to encourage thrift and the saving habit; (b) to provide means for savings by the general public; (c) to utilize the funds of the Bank for investments, including financing for the economic development of the nation; (d) to assume the functions and responsibilities of the Post Office Savings Bank; and (e) to promote the interests of its depositors and other customers. Powers of the Bank 5. For the purpose of carrying out the objects set out in section 4, the Bank may— (a) receive as deposits from its customers or collect on their behalf moneys which are repayable either on demand or otherwise; (b) grant loans and advances to, or give guarantees for the benefit of, its depositors and other customers for housing and such other purposes as may be approved by the Minister and enter into agreements for these purposes; (c) invest in securities of the Government or of the Government of any State or of any public authority or other securities for purposes consistent with its objects; (d) promote the formation of an incorporated company or participate in the promotion of such a company or acquire an undertaking or part thereof; 10 Laws of Malaysia ACT 146 (e) acquire land and property for or in connection with the exercise of its powers, and develop such land and property; (f) dispose of or lease or otherwise deal with the whole or any part of its undertaking or property; (g) provide and operate giro services; (h) accept from customers for safe custody securities and other articles of value; (i) levy a charge for any service rendered by it; (j) maintain accounts with the Government, the Government of any State, banks and other financial institutions; (k) open branches and appoint agents or correspondents; (l) operate schemes for the issue and promotion of premium savings certificates which are redeemable either on demand or otherwise and, notwithstanding any other written law to the contrary, hold, promote, organize and administer draws for the awarding of bonus payments to holders of issued premium savings certificates; and (la) provide, operate and manage any other products or services as may be necessary for the purpose of attaining the objects of the Bank and impose charges for such products and services; and (m) carry on the general business of a savings bank and do all such other things as are incidental or conducive to the attainment of its objects. PART III CONSTITUTION OF THE BANK Board of Directors 6. (1) There shall be a Board of Directors constituted under subsection (2), which shall be responsible for the policy and overall administration of the affairs and business of the Bank. Bank Simpanan Nasional 11 (2) Members of the Board of Directors shall be appointed by name by the Minister and shall comprise of— (a) a Chairman; (b) a representative of the Ministry of Finance, who shall be the Deputy Chairman; (c) (Deleted by Act A1389); (d) (Deleted by Act A1389); (e) not less than four other directors, who shall be persons of standing and experience in matters relating to banking, business or industry; and (f) the Chief Executive. Alternate director 7. (1) The Minister may in respect of each of the directors appointed under paragraph 6(2)(b) appoint by name a person to be an alternate director to attend meetings of the Board in place of the director when the director is for any reason unable to attend. (2) When attending meetings of the Board in place of a director, an alternate director shall for all purposes be deemed to be a member of the Board. (3) An alternate director shall cease to be an alternate director when the director in respect of whom he is an alternate director ceases to be a member of the Board. Terms of appointment of Chairman and directors 8. (1) Subject to the provisions of this Act— (a) the Chairman shall be appointed for a term not exceeding five years and shall be eligible for reappointment; and 12 Laws of Malaysia (b) ACT 146 any other director (other than the Chief Executive) shall hold office for a term not exceeding three years and shall be eligible for reappointment. (2) Directors shall be paid by the Bank such salaries, fees or allowances as may be determined by the Minister. (3) During the temporary incapacity owing to illness or during the temporary absence from Malaysia of the Chairman, the Deputy Chairman may act as temporary Chairman, and if both the Chairman and the Deputy Chairman are absent, the Minister may appoint one of the other directors to be temporary Chairman. (4) The Minister may at any time terminate the appointment of the Chairman or any director who— (a) is guilty of serious misconduct in relation to his office; (b) is absent, except on leave or with the approval of the Minister, from more than three consecutive meetings of the Board; (c) fails to comply with his obligations under section 12; or (d) is, in the opinion of the Minister, unfit to remain as Chairman or director. (5) No person shall be appointed or remain as Chairman or director of the Bank if he— (a) is convicted by a court of law of an offence and sentenced to imprisonment for a term of not less than one year, or of any offences involving fraud or dishonesty and has not received a free pardon; (b) becomes of unsound mind or otherwise incapable of carrying out his duties; or (c) becomes a bankrupt or makes any arrangement or composition with his creditors. (d) (Deleted by Act A397). Bank Simpanan Nasional 13 Appointment and duties of Chief Executive 9. (1) The Minister shall, after consulting the Chairman of the Board, appoint a Chief Executive on such terms and conditions as the Minister may think fit. (2) The Chief Executive— (a) (Deleted by Act A1389); (b) shall be responsible to the Board for the proper administration and management of the Bank in accordance with the policy laid down by the Board; (c) may, subject to the provisions of this Act, give decisions and exercise all powers, and do all acts which may be exercised or done by the Bank; and (d) shall be answerable to the Board for his acts and decisions. (3) The Chief Executive shall devote the whole