What power does Article 117 give the prime minister?

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Article 117 Grants the Prime Minister Significant Control Over 1MDB's Operations

Article 117 of 1Malaysia Development Berhad's (1MDB) Memorandum and Articles of Association (M&A) grants the prime minister the ultimate decision-making authority over a broad spectrum of the company's critical activities. This clause requires the prime minister's written approval for significant corporate actions, effectively placing key strategic and financial decisions under his direct purview. The insertion of this article occurred shortly before the Terengganu Investment Authority (TIA) was officially renamed 1MDB, underscoring its foundational importance to the company's governance structure.
Approval Required for M&A Amendments and Personnel Changes

The prime minister's written consent is mandated for any proposed alterations to 1MDB's M&A. Furthermore, Article 117 stipulates that the appointment and removal of directors and top management personnel within 1MDB also require the prime minister's explicit written approval. This provision ensures that the leadership and foundational rules of the company are subject to direct oversight by the head of government.
Oversight of Financial Commitments and Investments

Beyond structural and personnel matters, Article 117 extends the prime minister's authority to encompass all financial commitments, investments, and restructuring initiatives undertaken by 1MDB. This means that any significant financial undertaking by the company must receive the prime minister's prior written endorsement, providing a layer of control over the company's economic activities.
Authority Over Federal Guarantees and National Interests

A significant aspect of Article 117 involves decisions related to guarantees issued by the Federal Government of Malaysia on behalf of 1MDB. Such guarantees, whether for the company's interests, national interests, national security, or any federal government policy, necessitate the prime minister's written approval. The final determination of what constitutes "national interest," "national security," or federal government policy rests with the federal government itself, as clarified in the Public Accounts Committee's (PAC) report.

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What power does Article 117 give the prime minister?

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