Section 24
Section 24
(1)
No takaful operator shall –
(a)
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;
Incorporating amendments until S 1/2016
(Clean Version) NANI/Amiriah/Fiqah/Karimah as of 8th July 2019
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BLUV as at 14th January 2016
(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;
(d)
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;
(e)
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 (c); or
(f)
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 –
Incorporating amendments until S 1/2016
(Clean Version) NANI/Amiriah/Fiqah/Karimah as of 8th July 2019
27
BLUV as at 14th January 2016
(a)
an advance, loan or financing facility made without security; or
(b)
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.
(6)
Any person who fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000, and in the case of a continuing offence to a further fine not exceeding $10,000 for every day during which the offence continues after conviction.
Disclosure of interest by directors.