Takaful Order, 2008 · s 24

Suggest a correction

Tell us what is wrong in this text. We check every suggestion against the official version before we change anything.

What is wrong?Wrong or mistyped wordsWrong structure or numberingWrong title or detailsText that appears twice

What should change, and whyUp to 2,000 characters.The text as it should read (optional)

24.
Restrictions on payment of dividends and grants of advance, loans and financing facility
(1)
No takaful operator shall-fa)
pay any dividend on its shares until all its capitalised expenditure
(including preliminary expenses, organisation expenses, share selling commission, brokerage, amount of losses incurred, and any other item of expenditure not represented by tangible assets) have been completely written off;
{b) grant an advance, a loan or a financing facility against the security of its own shares;
{c)
except in such circumstances and in such amounts as the
Authority may allow, grant an advance, a loan or a financing facility -
(i)
to any of its directors other than an advance, a loan or a financing facility secured by a certificate held by that director;
3000
(ii)
to a firm in which it or any of its directors has any interest as partner, manager or agent, or to an individual for whom or a firm for which any of its directors is a guarantor;
(iii)
to a company in which any of its directors owns 20 per cent or more of the voting shares;
(iv)
to a company in which any of its takaful operators owns 20 per cent or more of the voting shares;
{v)
to a company which owns 20 per cent or more of the voting shares of that takaful operator; and
{vi)
to a company in which a company mentioned in sub-paragraph (v) owns 20 per cent or more of the voting shares;
fd) except in such circumstances and in such amounts as the
Authority may allow, grant to any person, other than an employee or any person mentioned in paragraph {c), an unsecured advance, unsecured loan or unsecured financing facility;
fe)
except in such circumstances as the Authority may allow, act as guarantor of an advance, a loan or a financing facility granted to any person, firm or company mentioned in paragraph fc); or ff)
except with the written approval of the Authority, pledge, mortgage or charge any of its assets or securities.
(2)
All the directors of the takaful operator shall be liable jointly and severally to indemnify the takaful operator against any loss arising from the making of an unsecured advance, unsecured loan or unsecured financing facility.
(3)
Nothing in this section shall preclude the takaful operator from investing its fund in any manner not contrary to Hukum Syara~
(4)
For the purpose of subsection (1), "director" shall be deemed to include the wife, husband, father, mother, son and daughter of a director.
(5)
For the purposes of this section and section 25, "unsecured advance",
"unsecured loan" and "unsecured financing facility" mean respectively-
3001
fa) an advance, loan or financing facility made without security; or fb J in the case of an advance, loan or financing facility made with security, any portion of the advance, loan, or financing facility which at any time exceeds -
(i)
the market value of the assets constituting the security; or
(ii)
the value of the assets constituting the security assessed on a basis approved by the Authority where it is satisfied that there is no established market value.
Disclosure of interest by directors.

Edit the text above. Up to 20,000 characters.Where you checked it (optional)A link to the official version, if you have one.

The text as we hold it

Open the official text

s 24Restrictions on payment of dividends and grants of advance, loans and financing facility

(1)

No takaful operator shall-fa)

pay any dividend on its shares until all its capitalised expenditure

(including preliminary expenses, organisation expenses, share selling commission, brokerage, amount of losses incurred, and any other item of expenditure not represented by tangible assets) have been completely written off;

{b) grant an advance, a loan or a financing facility against the security of its own shares;

{c)

except in such circumstances and in such amounts as the

Authority may allow, grant an advance, a loan or a financing facility -

(i)

to any of its directors other than an advance, a loan or a financing facility secured by a certificate held by that director;

3000

(ii)

to a firm in which it or any of its directors has any interest as partner, manager or agent, or to an individual for whom or a firm for which any of its directors is a guarantor;

(iii)

to a company in which any of its directors owns 20 per cent or more of the voting shares;

(iv)

to a company in which any of its takaful operators owns 20 per cent or more of the voting shares;

{v)

to a company which owns 20 per cent or more of the voting shares of that takaful operator; and

{vi)

to a company in which a company mentioned in sub-paragraph (v) owns 20 per cent or more of the voting shares;

fd) except in such circumstances and in such amounts as the

Authority may allow, grant to any person, other than an employee or any person mentioned in paragraph {c), an unsecured advance, unsecured loan or unsecured financing facility;

fe)

except in such circumstances as the Authority may allow, act as guarantor of an advance, a loan or a financing facility granted to any person, firm or company mentioned in paragraph fc); or ff)

except with the written approval of the Authority, pledge, mortgage or charge any of its assets or securities.

(2)

All the directors of the takaful operator shall be liable jointly and severally to indemnify the takaful operator against any loss arising from the making of an unsecured advance, unsecured loan or unsecured financing facility.

(3)

Nothing in this section shall preclude the takaful operator from investing its fund in any manner not contrary to Hukum Syara~

(4)

For the purpose of subsection (1), "director" shall be deemed to include the wife, husband, father, mother, son and daughter of a director.

(5)

For the purposes of this section and section 25, "unsecured advance",

"unsecured loan" and "unsecured financing facility" mean respectively-

3001

fa) an advance, loan or financing facility made without security; or fb J in the case of an advance, loan or financing facility made with security, any portion of the advance, loan, or financing facility which at any time exceeds -

(i)

the market value of the assets constituting the security; or

(ii)

the value of the assets constituting the security assessed on a basis approved by the Authority where it is satisfied that there is no established market value.

Disclosure of interest by directors.