1 PART I PRELIMINARY-1. Short Title.

(1) This Act may be cited as the Accountants Act 1967 .

(2) (Omitted).

(3) The Minister may by notification in the Gazette suspend the operation of this Act in any part of Malaysia and may at any time thereafter remove the suspension:

Provided that the power of suspension shall not be exercised more than once in relation to any part of Malaysia.

2 PART I PRELIMINARY-2. Interpretation.

In this Act unless the context otherwise requires:

  "Committee"  means any committee established under this Act;

  "Council"  means the Council of the Institute established by section 8;

  "Council members"  or "members of the Council" means the members of the Council specified under section 8(1) and includes the President and Vice-President of the Institute;

[Ins. Act A1099]

  "Institute"  means the Malaysian Institute of Accountants established by section 3;

  "Malaysian Institute of Accountants Qualifying Examination"  means the examination referred to in section 15A;

[Ins. Act A1099]

  "member"  mea

3 PART II THE INSTITUTE-3. The Institute and its powers.

(1) There is hereby established a body called "Malaysian Institute of Accountants" which shall be a body corporate with perpetual succession and a common seal, and with power, subject to this Act, to sue and to be sued in its own name, to enter into contracts, to acquire, purchase, take, hold and enjoy movable and immovable property of every description, and to convey, assign, surrender, charge, mortgage, reassign, transfer or dispose of or otherwise deal with, any movable or immovable property or any interest therein.

(2) Without prejudice to the generality of subsection (1), the Institute shall have power to do all acts as are necessary for the purposes of the Institute and in particular:

(a) to purchase or lease any lands required for any of the purposes of the Institute;

(b) to take up and subscribe for or otherwise acquire shares in any company, if membership of the company is essential or adv

4 PART II THE INSTITUTE-4. Members of the Institute.

The Institute shall consist of such persons as are for the time being registered as members.

5 PART II THE INSTITUTE-5. Office of the Institute.

The Institute shall at all times keep and maintain an office and the address of the office and any change thereof shall be published by the Registrar in the Gazette .

6 PART II THE INSTITUTE-6. Functions of the Institute.

The functions of the Institute shall be:

(a) to determine the qualifications of persons for admission as members;

(b) to provide for the training and education by the Institute or any other body, of persons practising or intending to practise the profession of accountancy;

[ Am. Act A1099 - Prior text read - "to provide for the training, education and examination by the Institute or any other body, of persons practising or intending to practise the profession of accountancy; "]

(ba) to approve the Malaysian Institute of Accountants Qualifying Examination and to regulate and supervise the conduct of that Examination;

[Ins. Act A1099]

(c) to regulate the practice of the profession of accountancy in Malaysia;

(d) to promote, in any manner it thinks fit, the interests of the profession of accountancy

7 PART II THE INSTITUTE-7. Rules of the Institute.

(1) The Institute may at any general meeting make such rules as may be necessary or expedient for giving effect to this Act and for the due administration thereof and such rules may provide for any of the following matters:

(a) the regulation of the practice of the profession of accountancy in Malaysia;

(b) the admission of members, the fees payable by members on admission and the manner in which a person shall cease to be a member;

(c) the qualifications of persons for admission as members;

(d) the training or education of candidates for admission as members and the fees payable therefore;

[ Am. Act A1099 - Prior text read - "the training, education or examination of candidates for admission as members and the fees payable therefore; "]

(e) the practical experience required for registration as chartered accountants and

8 PART III THE COUNCIL-8. Constitution of the council.

(1) For the purposes of this Act there shall be established a Council of the Institute comprising the following persons who must be members of the Institute:

(a) the Accountant General, Malaysia, or his nominee;

(b) not more than five members appointed from the higher educational institutions specified in Part I of the Third Schedule;

(c) the President of the Malaysian Association of Certified Public Accountants;

(d) three members appointed from amongst the Presidents of the local branches of the recognised bodies specified in Part II of the First Schedule;

(e) one member appointed from amongst the members of the council of the Malaysian Association of Certified Public Accountants, other than its President;

(f) not more than nine other members appointed from amongst suitably qualified persons; and

(g) ten members elected b

9 PART III THE COUNCIL-9. General powers of the Council.

The Institute and its funds shall be managed by the Council and all such powers, acts or things as may be exercised or done by the Institute which are not by this Act expressly directed or required to be exercised or done by the Institute in general meeting may, subject to this Act or any rules or any resolution passed from time to time by the Institute in general meeting be exercised or done by the Council:

Provided that no resolution of the Institute shall invalidate the exercise of any power or the doing of any act or thing by the Council previously which would have been valid if such resolution had not been passed.

10 PART III THE COUNCIL-10. Specific powers of the Council.

Without prejudice to the generality of section 9 and subject to any rules, the Council shall have power:

(a) to make by-laws to provide for all matters not expressly reserved for the Institute in general meeting whether the same be expressed amongst its powers or not and by-laws for the inculcation of sound practice of the profession of accountancy, the prevention of illegal and dishonourable practices of that profession and the promotion of the interests of that profession;

(b) to appoint at its discretion such officers, clerks, agents and servants for permanent, temporary or special services as it may deem fit and to determine their duties and terms and conditions of service;

(c) to take cognisance of anything affecting the Institute or the professional conduct of its members and to bring before any general meeting of the Institute any matter which it considers material to the Institute

11 PART III THE COUNCIL-11. Specific powers of first Council.

(1) Notwithstanding section 7 and without prejudice to sections 9 and 10 the first Council constituted shall have power to make rules to provide for any of the matters mentioned in section 7 (1).

(2) All rules made under subsection (1) shall require the approval of the Minister before publication in the Gazette and shall remain in force until amended or revoked under section 7.

12 PART IV MEMBERSHIP OF THE INSTITUTE-12. Appointment of Registrar and functions of Registrar.

For the purpose of this Act the Institute shall with the approval of the Minister appoint a Registrar who shall exercise and discharge the functions conferred or imposed on him by this Act or any rules or by by-laws made under this Act.

13 PART IV MEMBERSHIP OF THE INSTITUTE-13. Register of accountants.

(1) The Council shall cause to be maintained a register of members in which the members shall be classified as:

(a) chartered accountants;

(b) licensed accountants; and

(c) associate members.

[ Am. Act 1099 - Prior text read - "(a) public accountants; (b) registered accountants; and (c) licensed accountants." ]

(2) The register shall be kept at the office of the Institute and shall be available for inspection at reasonable hours on payment of a prescribed fee.

(3) The Council shall cause to be published in the Gazette a copy of the register at least once in every year.

14 PART IV MEMBERSHIP OF THE INSTITUTE-14. Membership of Institute.

(1) Subject to subsections (3) and (6) every person on payment of the prescribed fee shall be entitled to be admitted as a member of the Institute, if:

(a) he has passed any of the final examinations specified in Part I of the First Schedule and has not less than three years' practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organisation or other undertaking approved by the Council;

(b) he is a member of any of the recognised bodies specified in Part II of the First Schedule; or

(c) he is eligible to sit for and has passed the Malaysian Institute of Accountants Qualifying Examination and has not less than three years' practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance co

15 PART IV MEMBERSHIP OF THE INSTITUTE-15. Membership as chartered accountants.

An applicant shall, before admission as a chartered accountant, satisfy the Council that:

(a) he has passed any of the final examinations specified in Part I of the First Schedule and has not less than three years' practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organisation or other undertaking approved by the Council;

(b) he is a member of any of the recognised bodies specified in Part II of the First Schedule;

(c) he is eligible to sit for and has passed the Malaysian Institute of Accountants Qualifying Examination and has not less than three years' practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance company, local authority or other commercial, financial, industrial

15A PART IV MEMBERSHIP OF THE INSTITUTE-15A. Malaysian Institute of Acountants Qualifying Examination.

(1) For the purposes of sections 14 and 15, the Malaysian Institute of Accountants Qualifying Examination:

(a) shall be conducted by the higher educational institutions specified in Part I of the Third Schedule or the recognised bodies specified in Part II of that Schedule; and

(b) shall not be conducted without the approval of the Institute.

(2) A person shall only be eligible to sit for the Malaysian Institute of Accountants Qualifying Examination if he possesses a qualification relating to accounting, business or finance recognised by the Public Services Department of the Government or other qualifications approved by the Council.

(3) The Minister may, after consulting the Institute, by order published in the Gazette amend the Third Schedule.

[Ins. Act A1099]

16 PART IV MEMBERSHIP OF THE INSTITUTE-16. Membership: Licensed accountants.

(1) Notwithstanding section 14(1) , but subject to section 14(3) and (6) , every person on payment of the prescribed fee shall be entitled to be admitted as a member of the Institute as a licensed accountant:

(a) if he has been granted limited or conditional approval to act as an auditor of companies under section 8(6) of the Companies Act 1965, or if he has been in public practice as an accountant, a tax consultant or a tax adviser immediately before the coming into operation of this Act; or

(b) if he is a member of the Malaysian Society of Accountants and has passed any of the final examinations of that body last held in December 1992 and has not less than three years' practical accounting experience in the service of a chartered accountant or in a Government department, bank, insurance company, local authority or other commercial, financial, industrial or professional organisation or other undertaking a

16A PART IV MEMBERSHIP OF THE INSTITUTE-16A. Associate member.

(1) Any person who is closely associated with the profession of accountancy or who has participated in the advancement of accountancy training and education but is otherwise not qualified under this Act to be admitted as a chartered accountant may, subject to section 14(3) , be admitted as an associate member of the Institute on payment of the prescribed fees if he satisfies the requirements of the rules relating to the admission of an associate member made under section 7(1) .

(2) An associate member is entitled to all the privileges accorded to a member who is a chartered accountant or a licensed accountant but is not entitled to vote at the meetings of the Institute held under paragraph 8 of the Second Schedule nor request for a general meeting under paragraph 8(2) of that Schedule.

17 PART IV MEMBERSHIP OF THE INSTITUTE-17. Entitlement.

(1) Subject to section 22 any member who has been registered as a chartered accountant shall, so long as he is so registered and continues to act as a chartered accountant, describe himself as a "Chartered Accountant", and may use the letters "C. A. (M)" after his name.

[Am. Act 1099 - Prior text read - "(1) Subject to section 22 any member who has been registered as a public accountant shall, so long as he is so registered and continues to act as a public accountant, describe himself as a "Public Accountant", and may use the letters "P.A.(M)" after his name." ]

(2) (Deleted).

[Deleted by Act A1099 - Prior text read - "Subject to section 23, any member who has been registered as a registered accountant shall, so long as he is so registered, describe himself as a "Registered Accountant", and may use the letters "R.A.(M)" after his name." ]

(3) Subject to section 23, any

18 PART IV MEMBERSHIP OF THE INSTITUTE-18. Prohibition.

Without prejudice to any other provisions of this Act or rules or bylaws no member shall:

(a) allow any person not being a member to practise in his name as a chartered accountant;

(b) be a director or a shareholder in a company incorporated under the Companies Act 1965, or any other written law, being a company which carries on a business of auditing, nor shall he use a trade or association name under which to practice the profession;

(c) in any way, practice as a chartered accountant or licensed accountant other than:

(i) in his own name;

(ii) in the name or names of his partner or partners being chartered accountants or licensed accountants; or

(iii) in the name of a firm existing at the time of the coming into operation of this Act or formed thereafter provided that the partners in Malaysia are eligible to be registered as chartered accountants or l

18A PART IV MEMBERSHIP OF THE INSTITUTE-18A. Advertisement.

A member who is a chartered accountant or a licensed accountant may advertise himself as being engaged in practice as a chartered accountant or licensed accountant respectively in accordance with by-laws made by the Council.

[Ins. Act A1099]

19 PART V GENERAL-19. Investigation Committee, Disciplinary Committee and Disciplinary Appeal Board.

[Am. Act A1099 - Prior text read - "Appointment of Investigation Committee and Disciplinary Committee." ]

At the first meeting of the Council held after the first general meeting and after each annual general meeting of the Institute, the Council shall appoint the following Committees:

(a) an Investigation Committee comprising five members of the Council of whom three shall form a quorum;

[Am. Act 1099 - Prior text read - "(a) an Investigation Committee comprising three members of the Council of whom two shall form a quorum; and" ]

(b) a Disciplinary Committee comprising five members of the Council not being members of the Investigation Committee of whom three shall form a quorum; and

[Am. Act 1099 - Prior text read - "(b) a Disciplinary Committee comprising five members of the Council not being members of

20 PART V GENERAL-20. Functions of Investigation Committee and Disciplinary Committee.

(1) The Investigation Committee shall investigate any complaints made against any member in the manner laid down in the rules and where it considers that this is justified shall refer the matter to the Disciplinary Committee.

(2) The Disciplinary Committee shall if it thinks fit exercise in respect of that member any disciplinary powers conferred upon it by rules.

21 PART V GENERAL-21. Appeal against decision of Disciplinary Committee.

(1) Any member aggrieved by the decision of the Disciplinary Committee may, within a period of twenty-one days after the decision has been communicated to him, appeal to the Disciplinary Appeal Board.

(2) When the Disciplinary Appeal Board considers an appeal made under subsection (1) , any member of the Investigation Committee who conducted the investigation into the complaint against the member who is making the appeal, or any member of the Disciplinary Committee against whose decision the appeal is made shall not be present or in any way participate in any proceedings relating to that appeal.

(3) The Disciplinary Appeal Board may confirm, reverse or vary the decision of the Disciplinary Committee.

(4) The decision of the Disciplinary Appeal Board under subsection (3) shall be final.

[Subs. Act A1099 - Prior text read - "(1) Any member aggrieved by any decision of the Disciplinary Committee may, withi

22 PART V GENERAL-22. Holding out as chartered accountant or auditor or tax consultant.

No person shall unless he is registered as a chartered accountant under this Act and has his principal or only place of residence within Malaysia:

(a) practice or hold himself out as a chartered accountant, auditor, tax consultant, tax adviser or any other like description;

(b) adopt, use or exhibit the terms "chartered accountant", "auditor", "tax consultant", "tax adviser" or any other term of like description; or

(c) adopt, use or exhibit the term "accountant" or any other term of like description in such circumstances as to indicate or to be likely to lead persons to infer that he is a chartered accountant or that he is qualified by any written law to practice the profession of or is in practice as a chartered accountant:

Provided that nothing in this section shall operate to prevent an advocate or any person authorized under any other law for the time being in force in Malaysi

23 PART V GENERAL-23. Holding out as licensed accountant or associate member.

No person shall unless he is registered under this Act and has his principal or only place of residence within Malaysia:

(a) practice or hold himself out as a licensed accountant or an associate member;

(b) adopt, use or exhibit the terms "licensed accountant" or "associate member", or

(c) adopt, use or exhibit the term "accountant" or any other term of like description in such circumstances as to indicate or to be likely to lead persons to infer that he is a licensed accountant or an associate member.

[Am. Act A1099 - Prior text read - "23. Holding out as registered accountant or licensed accountant.

No person shall unless he is registered under this Act and has his principal or only place of residence within Malaysia -

(a) practice or hold himself out as a registered accountant or a lice

24 PART V GENERAL-24. Saving.

Nothing in section 22 or 23 shall debar any person who is registered as a licensed accountant from carrying on any practice in which he was professionally engaged immediately before the coming into operation of this Act.

24A PART V GENERAL-24A. Act or omission done in good faith.

No action or suit shall be instituted or maintained in any court against any person for any act or omission done in good faith in the exercise of the powers and duties under this Act and in a reasonable belief that it was necessary for the purpose intended to be served by it.

[Ins. Act A1099]

25 PART V GENERAL-25. Fraudulent practices.

(a) Any person who - procures or attempts to procure registration or a certificate of membership under this Act by knowingly making or producing or causing to be made any false or fraudulent declaration, certificate, application or representation, whether in writing or otherwise;

(b) wilfully makes or causes to be made any falsification in the register of the Institute;

(c) forges, alters or counterfeits any certificate of membership issued under this Act;

(d) uses any forged, altered or counterfeit certificate of membership under this Act knowing the same to have been forged, altered or counterfeited; or

(e) personates a member of the Institute or buys, sells or fraudulently obtains a certificate of membership issued under this Act,

shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit

26 PART V GENERAL-26. Penalty for certain offences.

Any person contravening section 22 or 23 shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding one year and on a second or subsequent conviction to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding two years.

[Am. Act A1099 - Prior text read - "Any person contravening section 22 or 23 shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding one thousand ringgit or to imprisonment for a term not exceeding one year and on a second or subsequent conviction to a fine not exceeding two thousand ringgit or to imprisonment for a term not exceeding two years." ]

27 PART V GENERAL-27. Penalty for misrepresentation by body corporate.

Any body corporate which, or any director, officer, or servant thereof who, does any act of such a nature and in such a manner as to hold out that the body corporate is a chartered accountant shall be guilty of an offence and the body corporate shall, on conviction, be liable to a fine not exceeding twenty thousand ringgit and where the act is done by a director, officer or servant of the body corporate the director, officer or servant thereof shall also, on conviction, be liable to a fine not exceeding one thousand ringgit or to imprisonment for a term not exceeding one year and on a second or subsequent conviction to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years.

[Am. Act A1099 - Prior text read - "Any body corporate which, or any director, officer, or servant thereof who, does any act of such a nature and in such a manner as to hold out that the body corporate is a public ac

28 PART V GENERAL-28. Offences by firms.

Where any firm does any act which in the case of a person would be an offence under this Act, every member by the firm shall be deemed to have committed the offence unless he proves that he was unaware of the commission of that act.

29 PART V GENERAL-29. General penalty.

Any person who commits an offence against this Act for which no penalty has been expressly provided shall, on conviction, be liable to a fine not exceeding five thousand ringgit.

[Am. Act A1099 - Prior text read - "Any person who commits an offence against this Act for which no penalty has been expressly provided shall, on conviction, be liable to a fine not exceeding five hundred ringgit." ]

30 PART V GENERAL-30. Recovery of moneys by Council.

Any sum of money payable to the Institute under this Act or the rules may be recovered by the Council as a debt due to the Council in any court.

31 PART V GENERAL-31. Rules re meetings and membership of Council.

The provisions of the Second Schedule shall have effect with respect to the Institute and the Council.