19th ANNUAL GENERAL MEETING
2.00 PM, SATURDAY, 24 SEPTEMBER 2005

BALLROOM A & B, HILTON KUALA LUMPUR

NO 3, JALAN STESEN SENTRAL, 50470 KUALA LUMPUR

1. Preamble:
   
   At the Extraordinary General Meeting on 26 May 2001, the members present voted and approved the Resolution which adopted in toto, the Malaysian Institute of Accountants (Membership and Council) Rules 2001 and the Malaysian Institute of Accountants (Disciplinary) Rules 2002 (collectively referred to as the ‘Rules’), subject to the coming into force of the Accountants (Amendment) Act 2001 and the approval of the Minister of Finance thereto.
   
   The Accountants (Amendment) Act 2001 came into force on 28 June 2001. The above Rules were approved by the Minister of Finance, duly gazetted and came into force on 9 November 2001 and 1 June 2002 respectively.
   
   Since then, these Rules have been the basis through which the Institute has regulated the admission and conduct of members, their practice as accountants in Malaysia and the administration of the Institute and its members.
   
   However, a number of processes and weaknesses have been identified, which can be remedied through amendments to the Rules. The Council has approved a number of proposed amendments to the Malaysian Institute of Accountants (Membership and Council) Rules 2001 and the Malaysian Institute of Accountants (Disciplinary) Rules 2002, so as to facilitate the regulation of the accountancy profession and the efficient administration of the Institute.
    

2. Resolution 1 - Proposed amendments to the Malaysian Institute of Accountants (Membership and Council) Rules 2001:
   
   Resolution 1 that is to be tabled at the forthcoming 19th Annual General Meeting proposes the adoption of amendments to the Malaysian Institute of Accountants (Membership and Council) Rules 2001 as follows:
   
   Resolution 1
   
   IT IS HEREBY RESOLVED THAT pursuant to Section 7 of the Accountants Act, 1967 and subject to the approval of the Minister of Finance, the amendments to the Malaysian Institute of Accountants (Membership and Council) Rules 2001 as set out in Appendix 1 herein be adopted in toto and shall come into force on such date as the Minister shall appoint.
   
   The proposed amendments to the Malaysian Institute of Accountants (Membership and Council) Rules 2001 are set out in Appendix 1 herein. The Council’s rationale for the proposed amendments and a marked up version of the Malaysian Institute of Accountants (Membership and Council) Rules 2001 indicating the proposed amendments, set out in Appendix 1(A) and Appendix 1(B) respectively, can be downloaded from the Institute’s website at www.mia.org.my under the link The Institute-About MIA-AGM-AGM 2005.
   
   The main objectives of the proposed amendments to the Membership and Council Rules 2001 are –

   • to ensure that conscientious members of the Institute who promptly and expeditiously settle all fees and charges payable to the Institute, are not made to shoulder the burden of those recalcitrant members who fail to pay annual subscriptions, practising certificate fees and other charges due and payable to the Institute for example, practice review fees or penalties imposed for disciplinary offences. The resources of the Institute should not be utilized to provide services to this small group of recalcitrant members unless and until they have settled all outstanding payments;

   • to ensure that members continuously update their particulars with the Institute, particularly current correspondence addresses, so that there is no wastage in the services rendered by the Institute to members. Any notices or documents required to be sent to members will be sent to the last known correspondence address of the member as stated in the Institute’s records;

   • consequential amendments to streamline the Membership and Council Rules 2001.
      

3. Resolution 2 – Proposed amendments to the Malaysian Institute of Accountants (Disciplinary) Rules 2002:
   
   Resolution 2 that is to be tabled at the forthcoming 19th Annual General Meeting proposes the adoption of amendments to the Malaysian Institute of Accountants (Disciplinary) Rules 2002 as follows:
   
   Resolution 2
   
   IT IS HEREBY RESOLVED THAT pursuant to Section 7 of the Accountants Act, 1967 and subject to the approval of the Minister of Finance, the amendments to the Malaysian Institute of Accountants (Disciplinary) Rules 2002 as set out in Appendix 2 herein be adopted in toto and shall come into force on such date as the Minister shall appoint.
   
   The proposed amendments to the Malaysian Institute of Accountants (Disciplinary) Rules 2002 are set out in Appendix 2 herein. The Council’s rationale for the proposed amendments and a marked up version of the Malaysian Institute of Accountants (Disciplinary) Rules 2002 indicating the proposed amendments, set out in Appendix 2(A) and Appendix 2(B) respectively can be downloaded from the Institute’s website at www.mia.org.my under the link The Institute-About MIA-AGM-AGM 2005.
   
   The main objectives of the proposed amendments to the Disciplinary Rules 2002 are –

   • to expand the powers of the Disciplinary Committee to include the disciplinary punishment to require the member’s practice, in relevant situations, to undergo Practice Review. This is to address situations where in the course of investigations and subsequent disciplinary proceedings it is found that the member’s audit work in respect of one or more files falls short of the required standard. Such situations could mean that the member’s audit work in respect of other files is also below the required standard. The Disciplinary Committee, where it feels this is an appropriate punishment, should be empowered to require that member’s practice to be subject to Practice Review;

   • to empower the Disciplinary Committee to impose a time frame for compliance or default punishment when it imposes penalties, costs and expenses, requires the member to attend a course of instruction or undergo practice review. At present, the Institute is unable to compel the member to pay penalties or costs and expenses or to comply with the other punishments imposed;

   • to provide for the appropriate mode of service and deemed receipt of notices to members pursuant to the Disciplinary Rules, namely through the mechanism of registered post or dispatch by messenger to the last known correspondence address of the member as stated in the records of the Institute.

   • consequential amendments to streamline the Disciplinary Rules 2002.
      

4. Recommendation:
   
   For the reasons set out above and in Appendix 1(A) and Appendix 2(A), and on behalf of the Council, I strongly urge all members to vote to adopt the above Resolutions at the 19th Annual General Meeting on 24 September 2005.
   
   On behalf of the Council,
   
   
   
   
   Abdul Rahim Abdul Hamid
   President
   Malaysian Institute of Accountants
   26 August 2005