ACCOUNTANTS ACT 1967

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 94 ACCOUNTANTS ACT 1967 As at 21 June 2024 This text is ONLY AN UPDATED TEXT of the Accountants Act 1967 by the Attorney General’s Chambers. Unless and until reprinted pursuant to the powers of the Commissioner of Law Revision under subsection 14(1) of the Revision of Laws Act 1968 [Act 1], this text is NOT AN AUTHENTIC TEXT. 2 ACCOUNTANTS ACT 1967 First enacted … … … 1967 (Act No. 63 of 1967) Revised … … … 1972 (Act 94 w.e.f. 1 November 1972) Latest amendment made by P.U. (A) 164/2024 which came into operation on … … … 21 June 2024 PREVIOUS REPRINTS First Reprint … … … … … 1994 Second Reprint … … … … … 1999 Third Reprint … … … … … 2006 3 LAWS OF MALAYSIA Act 94 ACCOUNTANTS ACT 1967 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title 2. Interpretation PART II THE INSTITUTE 3. The Institute and its powers 4. Members of the Institute 5. Office of the Institute 6. Functions of the Institute 7. Rules of the Institute PART III THE COUNCIL 8. Constitution of the Council 9. General powers of the Council 10. Specific powers of the Council 11. Specific powers of first Council 4 Laws of Malaysia ACT 94 PART IV MEMBERSHIP OF THE INSTITUTE Section 12. Appointment of Registrar and functions of Registrar 13. Register of accountants 14. Membership of Institute 15. Membership as chartered accountants 15A. Malaysian Institute of Accountants Qualifying Examination 16. Membership: Licensed accountants 16A. Associate member 17. Entitlement 18. Prohibition 18A. Advertisement PART V GENERAL 19. Appointment of Investigation Committee, Disciplinary Committee and Disciplinary Appeal Board 20. Functions of Investigation Committee and Disciplinary Committee 21. Appeal against decision of Disciplinary Committee 22. Holding out as chartered accountant or auditor or tax consultant 23. Holding out as licensed accountant or associate member 24. Saving 24A. Act or omission done in good faith 25. Fraudulent practices 26. Penalty for certain offences 27. Penalty for misrepresentation by body corporate 28. Offences by firms 29. General penalty 30. Recovery of moneys by Council 31. Rules re meetings and membership of Council Accountants Section FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE 5 7 LAWS OF MALAYSIA Act 94 ACCOUNTANTS ACT 1967 An Act to provide for the registration of accountants and matters connected with it. [30 September 1967, P.U. (B) 79/1969] PART I PRELIMINARY Short title 1. (1) This Act may be cited as the Accountants Act 1967. (2) (Omitted). (3) The Minister may by notification in the Gazette suspend the operation of this Act in any part of Malaysia and may at any time after that remove the suspension: Provided that the power of suspension shall not be exercised more than once in relation to any part of Malaysia. Interpretation 2. In this Act unless the context otherwise requires— “Committee” means any committee established under this Act; 8 Laws of Malaysia ACT 94 “Council” means the Council of the Institute established by section 8; “Council members” or “members of the Council” means the members of the Council specified under subsection 8(1) and includes the President and Vice-President of the Institute; “Institute” means the Malaysian Institute of Accountants established by section 3; “Malaysian Institute of Accountants Qualifying Examination” means the examination referred to in section 15A; “member” means a person who is registered in accordance with this Act as a chartered accountant, a licensed accountant or an associate member; “prescribed” means prescribed by rules; “register” means the register of members required to be kept in accordance with section 13; “Registrar” means the Registrar appointed under section 12; “rules” means rules made under this Act; “total Council members” means the maximum number at any one time of Council members as specified in subsection 8(3). PART II THE INSTITUTE The Institute and its powers 3. (1) There is established a body called “Malaysian Institute of Accountants” which shall be a body corporate with perpetual succession and a common seal, and with power, subject to this Act, to sue and to be sued in its own name, to enter into contracts, to acquire, Accountants 9 purchase, take, hold and enjoy movable and immovable property of every description, and to convey, assign, surrender, charge, mortgage, reassign, transfer or dispose of or otherwise deal with, any movable or immovable property or any interest therein. (2) Without prejudice to the generality of subsection (1), the Institute shall have power to do all acts as are necessary for the purposes of the Institute and in particular— (a) to purchase or lease any lands required for any of the purposes of the Institute; (b) to take up and subscribe for or otherwise acquire shares in any company, if membership of the company is essential or advantageous to the Institute in connection with the acquiring and holding of any lease or tenancy from the company of land required for any of the purposes of the Institute; (c) except in the case of leases from month to month, to sell, surrender, lease, exchange or mortgage any land or building vested in it in such manner as may be found most convenient or advantageous; (d) to borrow money whether by way of bank overdraft or otherwise for such of the purposes of the Institute as the Council may from time to time consider desirable; and (e) to guarantee any contract with any company from which the Institute holds or intends to hold any lease or tenancy in accordance with paragraph (b) and any other contract in which the Institute may have a financial interest and to which it may lawfully be a party in accordance with this section. Members of the Institute 4. The Institute shall consist of such persons as are for the time being registered as members. 10 Laws of Malaysia ACT 94 Office of the Institute 5. The Institute shall at all times keep and maintain an office and the address of the office and any change thereof shall be published by the Registrar in the Gazette. Functions of the Institute 6. The functions of the Institute shall be— (a) to determine the qualifications of persons for admission as members; (b) to provide for the training and education by the Institute or any other body, of persons practising or intending to practise the profession of accountancy; (ba) to approve the Malaysian Institute of Accountants Qualifying Examination and to regulate and supervise the conduct of that Examination; (c) to regulate the practice of the profession of accountancy in Malaysia; (d) to promote, in any manner it thinks fit, the interests of the profession of accountancy in Malaysia; (e) to render pecuniary or other assistance to members or their dependants as it thinks fit with a view to protecting or promoting the welfare of members; and (f) generally to do such acts as it thinks fit for the purpose of achieving any of the aforesaid objects. Rules of the Institute 7. (1) The Institute may at any general meeting make such rules as may be necessary or expedient for giving effect to this Act and for the Accountants 11 due administration thereof and such rules may provide for any of the following matters: (a) the regulation of the practice of the profession of accountancy in Malaysia; (b) the admission of members, the fees payable by members on admission and the manner in which a person shall cease to be a member; (c) the qualifications of persons for admission as members; (d) the training or education of candidates for admission as members and the fees payable therefor; (e) the practical experience required for registration as chartered accountants and the authority of the Council or any Committee thereof to approve places of employment in which the practical experience may be obtained; (f) the classification from time to time of members; (g) the election, appointment, resignation and removal of members of the Council; (h) subject to subsection 8(2), the election, appointment, resignation and removal of the President and the Vice-President of the Institute; (i) subject to section 31, the holding of meetings of the Council and of the Institute; (j) subject to section 31, the manner of voting at any meeting of the Council or of the Institute; (k) the procedure of the Investigation Committee and the Disciplinary Committee and the procedure relating to any complaint to any such Committee; (ka) the procedure of the Disciplinary Appeal Board; 12 Laws of Malaysia ACT 94 (l) the publication in the Gazette, newspapers and elsewhere of proceedings and findings of the Disciplinary Committee and the Disciplinary Appeal Board; (m) the use and custody of the common seal of the Institute; (n) the custody, investment and expenditure of the funds and property of the Institute; (o) the regulation and administration of the Institute in all matters within its powers; (p) the provision relating to admission of associate members, and conferring of privileges on such members as the Institute may think proper, not inconsistent with this Act; (pa) the approval, regulation and supervision of the Malaysian Institute of Accountants Qualifying Examination; (q) such other matters as are required to be prescribed. (2) Rules made under subsection (1) shall require the approval of the Minister and shall be published in the Gazette. PART III THE COUNCIL Constitution of the Council 8. (1) For the purposes of this Act there shall be established a Council of the Institute comprising the following persons who must be members of the Institute: (a) the Accountant General, Malaysia, or his nominee; (b) not more than five members appointed from the higher educational institutions specified in Part I of the Third Schedule; Accountants 13 (c) the President of the Malaysian Association of Certified Public Accountants; (d) three members appointed from amongst the Presidents of the local branches of the recognized bodies specified in Part II of the First Schedule; (e) one member appointed from amongst the members of the council of the Malaysian Association of Certified Public Accountants, other than its President; (f) not more than nine other members appointed from amongst suitably qualified persons; and (g) ten members elected by the annual general meeting of the Institute in accordance with the rules of the Institute. (2) The members referred to in paragraphs (1)(b), (d), (e) and (f) shall be appointed by the Minister on the advice of the Accountant General and such appointments may be revoked by the Minister without assigning any reason therefor. (3) The total Council members shall not be less than twenty-five and more than thirty (4) The President and Vice-President of the Institute shall be elected by a simple majority vote of the total Council members from amongst the Council members for a term of two years. (5) In the event of any vacancy arising in the office of the President or of the Vice-President, the Council shall at its next meeting or as soon as may be thereafter elect one of the Council members to fill the vacancy by a simple majority vote of the total Council members for a new term of two years. (6) The President or Vice-President of the Institute shall not hold office for more than two consecutive years. (7) If the members of the Council fail to elect the President and Vice-President as specified in subsection (4) or (5), the Minister shall 14 Laws of Malaysia ACT 94 appoint the President and Vice-President from amongst the Council members for a period of two years. (8) A Council member shall not hold office for more than four consecutive years. (9) The Minister may, in respect of each Council member appointed under paragraphs (1)(c) and (d), appoint an alternate member to attend, in place of that Council member, meetings of the Council when that Council member is for a