Akta Pengurusan Danaharta Nasional Berhad 1998 (Akta 578) dan Pengurusan Danaharta Nasional berhad Act 1998 (Act 587) (Hingga 15HB Januari 2004)

AKTA PENGURUSAN DANAHARTA NASIONAL BERHAD 1998 (AKTA 587)

Detailed Contents Of Akta Pengurusan Danaharta Nasional Berhad 1998 (Akta 578) :

The Akta Pengurusan Danaharta Nasional Berhad 1998 (Akta 578) and Pengurusan Danaharta Nasional Berhad Act 1998 (Act 587) (Until 15 January 2004) are two related pieces of legislation in Malaysia that were enacted to address the financial crisis that hit the country in the late 1990s. Below is a detailed explanation of both acts in English.

1. Akta Pengurusan Danaharta Nasional Berhad 1998 (Akta 578)

The Akta Pengurusan Danaharta Nasional Berhad 1998 (Akta 578) was passed by the Malaysian parliament on 23 July 1998 to establish Danaharta Nasional Berhad (DNB) as a national asset management company. The main objective of the act was to facilitate the restructuring of the Malaysian financial system by acquiring non-performing loans (NPLs) from troubled financial institutions and managing them in an efficient manner.

Under the act, DNB was granted wide-ranging powers to acquire, hold, manage, and dispose of NPLs, as well as to take legal action against defaulting borrowers. DNB was also authorized to issue bonds and other securities to finance its operations, and to enter into agreements with other financial institutions to transfer NPLs.

The act established a board of directors to oversee DNB's operations and appointed a managing director to manage its day-to-day affairs. The managing director was required to submit annual reports to the minister responsible for finance, detailing DNB's activities, financial performance, and other relevant matters.

2. Pengurusan Danaharta Nasional Berhad Act 1998 (Act 587) (Until 15 January 2004)

The Pengurusan Danaharta Nasional Berhad Act 1998 (Act 587) was also enacted on 23 July 1998 to provide for the regulation and supervision of DNB. The act set out the legal framework for DNB's operations, including its powers, functions, and responsibilities.

Under the act, DNB was required to maintain proper books of accounts, to prepare annual financial statements, and to have its accounts audited by an independent auditor. The act also provided for the appointment of a special auditor by the minister responsible for finance to audit DNB's accounts if necessary.

The act authorized the minister responsible for finance to give directions to DNB on matters of policy, and to require DNB to furnish information or reports on its operations. The minister was also empowered to issue regulations to give effect to the act, and to amend or revoke such regulations as necessary.

In addition, the act provided for the protection of DNB's officers and employees from legal action arising from their official duties, provided that they acted in good faith and without negligence. The act also established an appeals tribunal to hear appeals from decisions of DNB in relation to the acquisition or disposal of assets.

In conclusion, both acts were enacted to address the financial crisis in Malaysia by establishing Danaharta Nasional Berhad as a national asset management company. The acts granted DNB wide-ranging powers to acquire and manage non-performing loans, and established a legal framework for its operations.