Islamic Banking Act · s 63

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63.
Appointment of chairman and new board members
(1) Where the Authority has assumed control of the business of an
Islamic bank in pursuance of section 59 and the Authority has made a determination that the value to be realised from the Islamic bank’s assets is less than the Islamic bank’s liabilities, the Authority may —
(a) serve notice upon any person who at the time of such determination was serving as a director of the Islamic bank and its

Islamic Banking subsidiaries that he shall cease to be director thereof without any right to compensation, whereupon he shall cease to be a director of the
Islamic bank and any agreement between him and the
Islamic bank which provides for compensation in respect of services of directors of the Islamic bank shall be unenforceable in so far as it relates to such compensation; and
(b) direct that either all former directors of the Islamic bank or, as the case may be, such former director or directors of the
Islamic bank as may be specified in the direction, shall cease to be entitled to compensation, whether by way of pension or otherwise, in respect of their service as directors, whereupon any agreement between any former director and the Islamic bank which provides for any such compensation shall be unenforceable in so far as it relates to such compensation.
(2) In the event of the Authority serving notice upon a director of an
Islamic bank pursuant to subsection (1)(a), such member of the Authority as the Authority may appoint shall by virtue of this section become chairman and a director of a newly constituted board of directors of the Islamic bank to be appointed by the Authority.
(3) Under subsection (2), the Authority shall appoint to the new board of directors not less than three persons but not more than twenty persons, and including at least two persons who, in the opinion of the
Authority, possess expertise in Islamic banking.
(4) The Authority in exercise of its control of an Islamic bank pursuant to section 59 shall take such steps as necessary to appoint the chairman and directors appointed pursuant to subsections (2), (3) and (4) as chairman and directors of every subsidiary of the Islamic bank and for the purposes of this subsection the Authority shall be entitled to exercise all voting rights pertaining to issued shares in any subsidiary of the
Islamic bank.
(5) Subject to section 64(2), no fee or reward, financial or otherwise shall be paid by the Islamic bank to any director who is appointed under this section.
(6) Notwithstanding his removal from office by subsection (1), every former director shall remain liable for all his acts and omissions in respect of the period while he was a director.

Islamic Banking 76

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s 63Appointment of chairman and new board members

(1)

Where the Authority has assumed control of the business of an

Islamic bank in pursuance of section 59 and the Authority has made a determination that the value to be realised from the Islamic bank’s assets is less than the Islamic bank’s liabilities, the Authority may —

(a)

serve notice upon any person who at the time of such determination was serving as a director of the Islamic bank and its

Islamic Banking subsidiaries that he shall cease to be director thereof without any right to compensation, whereupon he shall cease to be a director of the

Islamic bank and any agreement between him and the

Islamic bank which provides for compensation in respect of services of directors of the Islamic bank shall be unenforceable in so far as it relates to such compensation; and

(b)

direct that either all former directors of the Islamic bank or, as the case may be, such former director or directors of the

Islamic bank as may be specified in the direction, shall cease to be entitled to compensation, whether by way of pension or otherwise, in respect of their service as directors, whereupon any agreement between any former director and the Islamic bank which provides for any such compensation shall be unenforceable in so far as it relates to such compensation.

(2)

In the event of the Authority serving notice upon a director of an

Islamic bank pursuant to subsection (1)(a), such member of the Authority as the Authority may appoint shall by virtue of this section become chairman and a director of a newly constituted board of directors of the Islamic bank to be appointed by the Authority.

(3)

Under subsection (2), the Authority shall appoint to the new board of directors not less than three persons but not more than twenty persons, and including at least two persons who, in the opinion of the

Authority, possess expertise in Islamic banking.

(4)

The Authority in exercise of its control of an Islamic bank pursuant to section 59 shall take such steps as necessary to appoint the chairman and directors appointed pursuant to subsections (2), (3) and (4) as chairman and directors of every subsidiary of the Islamic bank and for the purposes of this subsection the Authority shall be entitled to exercise all voting rights pertaining to issued shares in any subsidiary of the

Islamic bank.

(5)

Subject to section 64(2), no fee or reward, financial or otherwise shall be paid by the Islamic bank to any director who is appointed under this section.

(6)

Notwithstanding his removal from office by subsection (1), every former director shall remain liable for all his acts and omissions in respect of the period while he was a director.

Islamic Banking 76