The SCMA also requires any Board Member or Board Committee Member who has or acquires a direct or indirect interest in any matter under consideration by the Board or Board Committee to:
- Disclose his or her interest and nature of that interest to the Board or Board Committee, which shall be noted in the minutes of the Board or Board Committee meeting.
- Recuse from participating in Board or Board Committee deliberations on the matter
Board Members who have disclosed their interest and recused themselves from deliberation will not be counted for a quorum of the Board or Board Committee meeting on the matter. Failure to make such disclosure is a criminal offence, punishable on conviction by a fine not exceeding RM250,000, imprisonment for up to five years, or both.
The SC Board has processes and procedures in place to ensure conflict checks are performed prior to the Secretariat sharing Board or Board Committee materials with its members. The conflict check includes disclosure of real, potential or perceived conflicts of interest.
If a Board Member discloses any real or potential conflict and recused him or herself from deliberation at the next meeting, the relevant documents will not be shared with that Board Member.
Board Members are also required to keep a record with the Commission Secretary of their personal interests and the interests of their dependents of which they are aware in order to comply with the disclosure of interest requirement under Section 13 of the SCMA.
The relevant SC governance provisions can be found in
Part II of the Securities Commission Malaysia Act 1993 [here]
