"appointed day"  means the day on which this Act, or if different dates are appointed for the coming into force of different provisions of this Act, the day on which Part IX comes into force;

  "authorised officer"  means-

(a) an officer of the Board authorised under section 46;

(b) a police officer not below the rank of Inspector; or

(c) an officer of customs;

  "Board"  means the Malaysian Rubber Board established under section 3;

  "cess"  means the cess imposed under section 37;

  "Chairman"  means the Chairman of the Board appointed under section 5;

3 PART II ESTABLISHMENT OF THE BOARD-3. The Board and its objectives.

(1) There is established a body corporate by the name of "Malaysian Rubber Board" with perpetual succession and a common seal, which may sue and be sued in its corporate name and, subject to and for the purposes of this Act, may enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Board upon such terms as it thinks fit.

(2) The objectives of the Board are-

(a) to promote and develop the rubber industry of Malaysia; and

(b) to develop national objectives, policies and priorities for the orderly development and administration of the rubber industry of Malaysia.

(3) The provisions of this First Schedule shall apply

4 PART II ESTABLISHMENT OF THE BOARD-4. Functions and powers of Board.

(1) The functions of the Board shall be-

(a) to implement policies and developmental programmes to ensure the viability of the rubber industry of Malaysia;

(b) to promote and implement research and development activities in the production, use and consumption of rubber;

(c) to plan, co-ordinate and monitor all rubber research and development activities;

(d) to regulate the rubber industry, in particular in relation to dealings in rubber, packing, grading, shipping and export of rubber;

(e) to control and monitor the quality of rubber, rubber planting materials and rubber products;

(f) to develop, transfer, exploit and promote research findings;

(g) to provide technical, advisory and consultancy services to the rubber industry;

(h) to administer and manage the Fund;

(i) to regulate the Mala

5 PART II ESTABLISHMENT OF THE BOARD-5. Membership of Board.

(1) The Board shall consist of the following members who shall be appointed by the Minister:

(a) a Chairman;

(b) a representative of the Ministry charged with the responsibility for the rubber industry;

(c) a representative of the Treasury;

(d) a representative of the Rubber Industry Smallholders' Development Authority;

(e) a representative of the smallholder sector of the rubber industry;

(f) a representative of the estate sector of the rubber industry;

(g) a representative of the rubber processing sector;

(h) a representative of the rubber trade sector;

(i) two representatives of the rubber products manufacturing sector;

(j) two representatives of such States as the Minister may determine;

(k) two persons who, in the opinion of the Minister, are able to

6 PART II ESTABLISHMENT OF THE BOARD-6. Tenure of office.

Subject to such conditions as may be specified in his instrument of appointment, a member of the Board shall, unless he sooner resigns or vacates his office or his appointment is sooner revoked, hold office for a term not exceeding two years and is eligible for reappointment.

7 PART II ESTABLISHMENT OF THE BOARD-7. Alternate members.

(1) The Minister may, in respect of each member appointed under paragraphs 5(1) (b) to (k) , appoint an alternate member to attend, in place of that member, meetings of the Board that that member is for any reason unable to attend.

(2) When attending meetings of the Board, an alternate member shall for all purposes be deemed to be a member of the Board.

(3) An alternate member shall, unless he sooner resigns his membership or his appointment is sooner revoked, cease to be an alternate member when the member in respect of whom he is an alternate ceases to be a member of the Board.

8 PART II ESTABLISHMENT OF THE BOARD-8. Temporary exercise of functions of Chairman.

(1) Where the Chairman is for any reason unable to perform the functions of the Chairman or during any period of vacancy in the office of the Chairman, the Minister may appoint any member of the Board other than the Director-General to perform the functions of the Chairman.

(2) Until an appointment under subsection (1) is made or in default of such appointment or in the absence of the Chairman from any meeting of the Board, the member appointed under paragraph 5(1) (b) shall perform the functions of the Chairman.

(3) A member appointed under subsection (1) or (2), as the case may be, shall, during the period in which he is performing the functions of the Chairman under this section be deemed to be the Chairman.

9 PART II ESTABLISHMENT OF THE BOARD-9. Revocation and resignation.

(1) The appointment of any member may at any time be revoked by the Minister without assigning any reason therefor.

(2) A member may at any time resign his office by a written notice addressed to the Minister.

10 PART II ESTABLISHMENT OF THE BOARD-10. Vacation of office.

(1) The office of a member of the Board shall be vacated-

(a) if he dies;

(b) if there has been proved against him, or he has been convicted on, a charge in respect of-

(i) an offence involving fraud, dishonesty or moral turpitude;

(ii) an offence under any law relating to corruption; or

(iii) any other offence punishable with imprisonment (in itself only or in addition to or in lieu of a fine) for more than two years;

(c) if he becomes a bankrupt;

(d) if he is of unsound mind or is otherwise incapable of discharging his duties;

(e) if he absents himself from three consecutive meetings of the Board without leave of the Chairman or in the case of the Chairman, without leave of the Minister;

(f) in the event of his resignation being accepted by the Minister; or

(g) if his appointment is revoked by the

11 PART II ESTABLISHMENT OF THE BOARD-11. Non-liability of members of Board.

No member of the Board shall incur personal liability for any loss or damage caused by an act in administering the affairs of the Board, unless the loss or damage is occasioned by an intentionally wrongful act on his part.

12 PART II ESTABLISHMENT OF THE BOARD-12. Public Authorities Protection Act 1948 [Act 198].

The Public Authorities Protection Act 1948 shall apply to any action, suit, prosecution or proceedings against the Board or against any member, officer, servant or agent of the Board in respect of any act, neglect or default done or committed by him in such capacity.

13 PART II ESTABLISHMENT OF THE BOARD-13. Public servant.

All members of the Board or any of its committees or any officer, servant or agent of the Board, while discharging their duties as such member, officer, servant or agent shall be deemed to be public servants within the meaning of the Penal Code. [F.M.S. Cap. 45]

14 PART II ESTABLISHMENT OF THE BOARD-14. Power of Minister to give directions.

(1) The Board shall be responsible to the Minister.

(2) The Minister may give directions not inconsistent with this Act and the Board shall, as soon as possible, give effect to such directions.

15 PART II ESTABLISHMENT OF THE BOARD-15. Returns, reports, accounts and information.

(1) The Board shall furnish to the Minister, and such public authority as may be directed by the Minister, such returns, reports, accounts and information with respect to its property and activities as the Minister may require or direct.

(2) Without prejudice to the generality of subsection (1), the Board shall, as soon as practicable after the end of each financial year, cause to be made and transmitted to the Minister and, if so directed by the Minister, to any other public authority, a report dealing with the activities of the Board during the preceding financial year and the report shall be in such form and shall contain such information relating to the proceedings and policy of the Board as the Minister may specify.

16 PART II ESTABLISHMENT OF THE BOARD-16. Delegation of Board's functions, powers or duties.

(1) The Board may, subject to such conditions, limitations or restrictions as it thinks fit to impose, delegate any of its functions, powers or duties, except the power to borrow money, grant loans, establish corporations or make regulations, to-

(a) any member of the Board;

(b) any committee established by the Board; or

(c) any officer or servant of the Board,

and any function, power or duty so delegated may be performed, exercised or discharged by the member, officer or servant, as the case may be, in the name and on behalf of the Board.

(2) A delegation under this section shall not preclude the Board itself from performing or exercising at any time any of the functions, powers or duties so delegated.

(3) Without prejudice to the generality of subsection (1) and the other provisions of this Act, the Board may delegate to the Director-General-

17 PART II ESTABLISHMENT OF THE BOARD-17. Board may establish committees.

(1) The Board may establish such committees as it considers necessary or expedient to assist it in the performance of its functions under this act, including a Management Committee for the purpose of managing the Malaysian Rubber Exchange.

(2) The Board may appoint any person to be a member of any committee established under subsection (1) provided that any committee so established shall include at least one member of the Board.

(3) A committee established under this section may elect any of its members to be chairman and may regulate its own procedure and, in the exercise of its powers under this subsection, such committee shall be subject to and act in accordance with any direction given to the committee by the Board.

(4) Meetings of a committee established under this section shall be held at such times and places as the chairman of the committee may, subject to subsection (3), determine.

(5) A committee may invite any

18 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-18. Appointment of Director-General.

(1) The Minister shall appoint a Director-General of the Board on such terms and conditions as the Minister may determine.

(2) The Board shall vest in the Director-General such powers and shall impose upon him such duties as the Board may determine.

(3) The Director-General shall be responsible for-

(a) the proper administration and management of the affairs of the Board;

(b) the preparation of-

(i) all programmes, schemes, projects and activities;

(ii) an estimate of expenditure for the implementation of the annual programmes; and

(iii) an estimate of income,

for the approval of the Board;

(c) the execution of the annual programme of the Board; and

(d) the carrying out of the decisions and directions of the Board.

(4) The Director-General shall have general control of the offi

19 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-19. Appointment of officers and servants.

(1) Subject to any regulations made under subsection (3), the Board may-

(a) with the approval of the Minister, appoint such number of Deputy Directors-General;

(b) appoint such number of the other officers and servants as may be necessary for carrying out the purposes of this act,

on such terms and conditions as the Board considers desirable.

(2) No person shall be eligible for employment as an officer or servant of the Board if he has, directly or indirectly, by himself or his partner, any share or interest in any contract or proposed contract with, for or on behalf of the Board.

(3) The Board may, with the approval of the Minister, make regulations with respect to the conditions of service of its officers and servants.

(4) The appointment of the Director-General and Deputy Directors- General shall be published in the Gazette .

20 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-20. Power to grant loans and make advances to officers and servants.

The Board may grant loans and make advances to its officers and servants on such terms and conditions as the Board may determine.

21 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-21. Delegation of Director-General's duties.

(1) The Director-General may in writing delegate any of the functions, powers or duties assigned to him under this Act to any officer of the Board, subject to such terms and conditions as he thinks fit.

(2) A delegation under this section shall not preclude the Director- General himself from performing or exercising at any time any of the functions, powers or duties so delegated.

22 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-22. Disciplinary committees.

(1) The Board shall have disciplinary authority over all its officers and servants and shall exercise disciplinary control in respect of all such persons in accordance with this Act and any regulations made under section 24.

(2) For the purposes of this section-

(a) there shall be established a disciplinary committee of the Board in respect of the Director-General consisting of-

(i) the Chairman, who shall be the chairman of the committee; and

(ii) at least two members of the Board, which shall not include the Director-General, as shall be determined among the members themselves; and

(b) the Board may, by notification in the Gazette, establish different disciplinary committees for different categories of officers and servants of the Board.

(3) The following shall apply to any disciplinary committee established under paragraph

23 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-23. Appeal against decision of disciplinary committee.

(1) A decision of the disciplinary committee established under paragraph 22(2) (a) shall be appealable to the Minister.

(2) A decision of the disciplinary committee established under paragraph 22(2) (b) shall be appealable to the Disciplinary Appeal Board which shall consist of the following members:

(a) the Chairman of the Board, who shall be the chairman of the Disciplinary Appeal Board and having a casting vote; and

(b) three members of the Board, not being members of the disciplinary committee whose decision is the subject-matter of the appeal, to be appointed by the chairman of the Disciplinary Appeal Board with the approval of the Board for the purpose of the appeal.

(3) The Minister or the Disciplinary Appeal Board, as the case may be, may confirm, reverse or vary the decision of the disciplinary committee.

(4) When the Disciplinary Appeal Board

24 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-24. Power to make disciplinary regulations.

(1) The Board may, with the approval of the Minister, make such regulations as it thinks necessary or expedient to provide for the discipline of the officers and servants of the Board.

(2) The disciplinary regulations made under this section-

(a) may create disciplinary offences;

(b) may provide for disciplinary punishments as the Board thinks appropriate, and the punishments may extend to warning, fine, forfeiture of emoluments, a deferment of salary movement, reduction of salary, reduction in rank and dismissal;

(c) shall provide for an opportunity to the person against whom disciplinary proceedings are taken to make representations against the disciplinary charge laid against him before a decision is arrived at by the disciplinary committee except in the following cases:

(i) where an officer or servant of the Board is dismissed or reduced in rank on the grou

25 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-25. Imposition of surcharge.

(1) A person who is or was in the employment of the Board may be surcharged if it appears to the Board that the person-

(a) has failed to collect monies owing to the Board for the collection of which he is or was responsible;

(b) is or was responsible for any improper payment of monies from the Board or for any payment of monies which is not duly approved;

(c) is or was responsible, directly or indirectly, for any deficiency in, or for the destruction of, any monies, stores or other property of the Board;

(d) being or having been an accounting officer, fails or has failed to keep proper accounts or records; or

(e) has failed to make any payment, or is or was responsible for any delay in the payment from the Board, of monies to any person to whom such payment is due under any law or under any contract, agreement or arrangement entered into between that pers

26 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-26. Notification of surcharge.

The Board shall notify the person surcharged in respect of any surcharge made under subsection 25(3).

27 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-27. Withdrawal of surcharge.

Notwithstanding subsection 25(3) and section 26, the Board may at any time withdraw any surcharge in respect of which a satisfactory explanation has been received or if it otherwise appears that no surcharge should have been made, and the Board shall forthwith notify the person surcharged of the withdrawal.

28 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-28. Recovery of surcharge.

The amount of any surcharge made under subsection 25(3) and not withdrawn under section 27 shall be a debt due to the Board from the person surcharged and may be sued for and recovered in any court at the suit of the Board and may also, if the Board so directs, be recovered by deduction-

(a) form the salary of the person surcharged;

(b) from the pension of the person surcharged,

by equal monthly instalments not exceeding one-fourth of the total monthly salary or pension, as the case may be, of that person.

29 PART III DIRECTOR-GENERAL, OFFICERS AND SERVANTS OF THE BOARD-29. Composition of Board in special cases.

In any action for surcharge against the Director-General, the composition of the Board for the purposes of sections 25 to 28 shall not include the Director-General.

30 PART IV RESEARCH AND DEVELOPMENT-30. Establishment of research centres.

(1) The Board may establish and manage research centres for the purpose of research into and investigation of all problems and matters relating to rubber, rubber products and the rubber industry.

(2) The Rubber Research Institute of Malaysia established under the Rubber Research Institute of Malaysia Act 1966 shall be reconstituted, controlled and managed as provided under this Act and shall be deemed to be a research centre established under this Act. [Act 407]

31 PART IV RESEARCH AND DEVELOPMENT-31. Functions and powers of research centres.

(1) The functions of a research centre shall be-

(a) to carry out rubber research and development activities; and

(b) to provide and conduct training in line with the needs of the rubber industry.

(2) The research centre shall have power-

(a) to undertake rubber research and development activities;

(b) to commission any person or body to carry out rubber research and development activities; and

(c) to impose fees or any other charges it thinks fit for the use of any facility relating to research, investigation, testing, technical advice, training or any other service provided by the research centre.

32 PART IV RESEARCH AND DEVELOPMENT-32. Access to research centres, etc.

(1) The Board may, subject to such conditions, restrictions or limitations as it may determine allow access to research centres and their facilities, and to their research findings.

(2) No person shall make copies of or take extracts from any research finding except in accordance with this Act.

33 PART IV RESEARCH AND DEVELOPMENT-33. Prohibition against reproduction or publication.

No person may reproduce or publish in whole or in part the contents of any research findings except-

(a) with the prior written consent of the Director-General; and

(b) in accordance with any terms and conditions as the Director- General may determine.

34 PART V FINANCE-34. The Fund.

(1) There is established, for the purposes of this Act, a fund to be known as the "Malaysian Rubber Board Fund", to be administered and controlled by the Board.

(2) The Fund shall consist of-

(a) such sums as may be provided for the purposes of this Act by Parliament;

(b) monies earned by the operation of any project, scheme or enterprise financed from the Fund;

(c) monies earned or arising from any property, investment, mortgage, charge or debenture acquired by or vested in the Board;

(d) any property, investment, mortgage, charge or debenture acquired by or vested in the Board;

(e) sums borrowed by the Board for the purposes of meeting any of its obligations or discharging any of its duties;

(f) monies earned from the consultancy, advisory or any other services provided by the Board and the research centres;

(g)

35 PART V FINANCE-35. Expenditure to be charged on Fund.

The Fund shall be expended for the purpose of-

(a) paying any expenditure lawfully incurred by the Board, including legal fees and costs and other fees and costs, and the remuneration of officers and servants of the Board, including the granting of loans, superannuation allowances, pensions or gratuities;

(b) financing research and development activities;

(c) contributing to research centres established under this Act;

(d) contributing to the Tun Abdul Razak Research Centre;

(e) contributing to international rubber bodies or organisations of which the Board is a member;

(f) contributing to organisations related to the rubber industry as the Minister may determine;

(g) financing scholarships for higher education as may be approved by the Board;

(h) granting loans to institutions of higher learning within or

36 PART V FINANCE-36. Conservation of Fund.

It shall be the duty of the Board to conserve the Fund by so performing its functions and exercising its powers under this Act as to secure that the total revenues of the Board are sufficient to meet all sums properly chargeable to its revenue account including depreciation and interest on capital taking one year with another.

37 PART V FINANCE-37. Cess on rubber and rubber products.

(1) The Minister may, after consultation with the Minister of Finance, make orders for the imposition, variation or cancellation of a cess on rubber and rubber products produced in or exported from Malaysia and the orders may specify the nature, amount and rate of the cess and the manner of collection of the cess.

(2) Except in so far as may otherwise be provided in any such order, such cess shall be deemed for the purposes of collection and the enforcement of the collection thereof to be a customs duty imposed under the Customs Act 1967. [Act 235]

(3) An order made under this section may prescribe different amounts, rates and manner of collection for different types or grades of rubber and rubber products.

(4) A person who fails or refuses to pay any cess imposed under this section commits an offence and shall, on conviction, be liable to a fine not exceeding ten times the amount of cess due or to imprisonment for a te

38 PART V FINANCE-38. Fees for technical advisory services.

The Board may fix and collect fees and other charges in respect of any technical advisory services or other services provided by the Board under this Act.

39 PART V FINANCE-39. Expenditure and preparation of estimates.

(1) The expenditure of the Board up to such amount as may be authorised by the Minister for any one year shall be defrayed out of the Fund.

(2) Before the beginning of September of each year, the Board shall submit to the Minister an estimate of the expenditure (including the expenditure for research and development activities) for the following year in such form and containing such particulars as the Minister may direct; and the Minister shall, before the beginning of the following year, notify the Board of the amount authorised for expenditure generally or of the amounts authorised for each description of expenditure.

(3) The Board may at any time submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any part of the additional expenditure included therein.

40 PART V FINANCE-40. Statutory Bodies (Accounts and Annual Reports) Act 1980.

The Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240] shall apply to the Board and any corporation established under this Act.