Islamic Banking Act · 2024 Revised Edition · Part · Reserve Funds, Dividends, Balance Sheets and Information
30. Disclosure of interest by directors
Official textFrom Attorney General's Chambers, unchanged
Every director of an Islamic bank who has in any manner whatsoever, whether directly or indirectly, an interest in a financing facility, or proposed financing facility from that Islamic bank shall, as soon as practicable, send a declaration in writing of the nature of the interest to the secretary of the Islamic bank and the secretary shall cause that declaration to be circulated forthwith to all the directors.
director
“director” includes any person occupying the position of director of a company, whatever the title of his office, and includes a person in accordance with whose directions or instructions the directors of a company are accustomed to act and an alternate or substitute director;
The requirements of subsection (1) do not apply in any case where —
the interest of the director consists only of being a member or creditor of an institution which is interested in a financing facility or proposed financing facility from that Islamic bank; and
the interest of the director may properly be regarded as of a trivial nature.
For the purposes of subsection (1), a general notice given to the board of directors of an Islamic bank by a director to the effect that he is an officer or member of a particular institution and is to be regarded as having any interest in any financing facility which, after the date of the notice, may be made to that institution is deemed to be a sufficient declaration of interest in relation to any financing facility so made if —
Islamic bank
“Islamic bank” means a company which carries on Islamic banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
it specifies the nature and extent of his interest in that institution;
his interest is not different in nature or greater in extent than the nature and extent so specified in the notice at the time any financing facility is made; and
Islamic Banking
it is given at a meeting of the directors of the Islamic bank or the director takes reasonable steps to ensure that it is declared at the next meeting of the directors after it is given.
Every director of an Islamic bank who holds any office or possesses any property whereby, whether directly or indirectly, duties or interest might be created in conflict with his duties or interest as director shall declare at a meeting of the directors of that Islamic bank the fact and the nature, character and extent of the conflict.
The declaration referred to in subsection (4) shall be made at the first meeting of the directors held —
after he becomes a director of the Islamic bank; or
if he is already a director, after he commences to hold the office or to possess the property, as the case may be.
Where any declaration is made under subsection (1) or (4), the secretary of the Islamic bank shall cause the declaration (if not actually made at the meeting) to be read at the next meeting of the directors after it is so made and shall record each such declaration in the minutes of the meeting at which it is made or read.
Any director who is in contravention of subsection (1) or (4)
is guilty of an offence and liable on conviction to a fine not exceeding $150,000, imprisonment for a term not exceeding 3 years or both.
Terms defined in s 2
director
Defined · s 2“director” includes any person occupying the position of director of a company, whatever the title of his office, and includes a person in accordance with whose directions or instructions the directors of a company are accustomed to act and an alternate or substitute director;
financing
Defined · s 2“financing” means the extension of credit, loans, advances, murabahah, leasing, instalment sale, istisna’ or any other modality that is not contrary to Hukum Syara’;
institution
Defined · s 2“institution” means a company incorporated or registered under the Companies Act;
Islamic bank
Defined · s 2“Islamic bank” means a company which carries on Islamic banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
Part
Prohibited Business
Part
Minimum Assets Requirements
Part
Powers of Control Over Islamic Banks
Part
Overseas Branches and Representative Offices of Domestic Islamic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part