Section 198 of the Companies Act 2016
A person shall not hold office as a director of a company or whether directly or indirectly be concerned with or takes part in the management of a company, if the person:
a. Is an undischarged bankrupt in or outside Malaysia;
b. Has been convicted of an offence relating to the promotion, formation or management of a corporation in or outside Malaysia;
c. Has been convicted of an offence involving bribery, fraud or dishonesty in or outside Malaysia;
d. Has been convicted of an offence under Sections 213, 217, 218, 228 and 539 in or outside Malaysia; or
e. Has been disqualified by the Court under Section 199.
Section 198(7) stated that any person who contravenes this section commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding 5 years or to a fine not exceeding RM1,000,000 or to both.