Abdoolcader J:

1. Preliminary

[1] Bank Kerjasama Rakyat Malaysia Berhad ('the Bank') is a Co-operative Society registered under the provisions of the Co-operative Societies Ordinance, 1948, primarily to provide financial and other facilities to its members in accordance with co-operative principles, and at all material times Datuk Haji Harun bin Haji ldris (the first accused), Datuk Abu Mansor bin Mohamed Basir (the second accused) and Ismail bin Din (the third accused) were respectively its President or Chairman, Managing Director and General Manager/Secretary.

[2] This case involves the joint trial of the three accused firstly on a charge preferred against all three of them for jointly committing forgery for the purpose of cheating under s 468 of the Penal Code, and secondly on a charge against the second accused for criminal breach of trust under s 406 of the Penal Code and a joint charge against the first and third accused under ss 19 and 406 of the Penal Code for abetment of the criminal breach of trust charge against the second accused.

[3] The charges read:

1. As against all three accused,

"That you jointly on or about 5 May 1975 at Bank Kerjasama Rakyat Malaysia Berhad at No 140 Jalan Ipoh, Kuala Lumpur, in the Federal Territory of Kuala Lumpur forged a certain document, to wit, Minutes of Investment Committee of Bank Kerjasama Rakyat Malaysia Berhad resolving that (a) three ordinary shares of Dunlop Estates Berhad, and (b) M$1m Debenture Stocks of Kuala Lumpur Kepong Berhad be lodged at the First National City Bank, Jalan Ampang, Kuala Lumpur for the purpose of securing Letters of Credit requirements of Tinju Dunia Sdn Bhd for amounts not exceeding M$6.5m, intending that it shall be used for the purpose of cheating and that you thereby committed an offence punishable under s 468 of the Penal Code."

2. As against the second accused,

"That you on or about 5 May 1975, at Kuala Lumpur in the Federal Territory, being entrusted with dominion over certain property,to wit, three ordinary shares of Dunlop Estates Berhad and M$1m Debenture Stocks of Kuala Lumpur Kepong Berhad belonging to the Bank Kerjasama Rakyat Malaysia Berhad committed criminal breach of trust and that you thereby committed an offence punishable under s 406 of the Penal Code."

3. As against the first and third accused,

"That you jointly on or about 5 May 1975, at Kuala Lumpur in the Federal Territory, abetted the commission of the offence of criminal breach of trust of certain property, to wit, three ordinary shares of Dunlop Estates Berhad and M$1m Debenture Stocks of Kuala Lumpur Kepong Berhad belonging to Bank Kerjasama Rakyat Malaysia Berhad by one Datuk Abu Mansor bin Mohd Basir which offence was committed in consequence of your abetment and that you thereby committed an offence punishable under ss 19 and 406 of the Penal Code."

[4] The supreme authority over the affairs of the Bank vests in its General Meeting specified in By-law 25 of the By-laws of the Bank (P4) but the management of its affairs is entrusted by virtue of By-law 42 to a Board of Directors which includes the Registrar of Co-operative Societies or his representative and a representative each from the Treasury and the Ministry responsible for cooperative movements, who were perhaps aptly referred to in this trial as the Government watchdogs. The Board is empowered to appoint an Executive Committee of the Board to which specific powers of management may be delegated (By-law 51 (i)(25) and also sub-committees or experts to assist it (Bylaw 51 (i)(10) in the discharge of its management funtions and responsibilities.

[5] The function of the President who is also referred to as the Chairman in the By-laws is to preside at all General and Board meetings and sign the minutes of meetings on confirmation thereof and supervise generally and be responsible for the proper functioning of the Bank (By-law 54). To assist the Board and the President or Chairman in the management of the Bank there are two o