Page 39 - MY_English HandBook

Rules of Conduct

4.7 Disciplinary Actions
• When the Independent Distributors violate this Business Handbook, the Company’s business strategies, any contracts with the
Company, the Company’s business policies, the Company’s announcements, publicity or communication, Direct Sales And
Anti-Pyramid scheme Act 1993, Direct Sales Regulation 1993, Direct Sales (Schemes and Conduct) Regulations 2001 and all other
subsidiary legislations or other regulations relating to direct sales activities as may be imposed by the authorities from time to
time, depending on the severity of the violation in each individual case, the Company may take one or more of the following
actions against the violating Independent Distributors:
1. Terminate the distributorship of the Independent Distributors;
2. The Independent Distributors are not allowed to join the Company perpetually;
3. Partial or full suspension of rights of the Independent Distributors;
4. Suspension of distribution, forfeiture, recovery of commissions and other benefits;
5. Cancel the pin title;
6. Other sanctions deemed appropriate by the Company.
• Even if there contain other rules for sanctions in this Business Handbook, the Company must still make appropriate sanctions
in accordance with this section.
4.8 Tax Regulations

4.8.1 Tax Return Filing
• According to the provisions of the Income Tax Act 1967 (ITA 1967), before statutory tax declaration, the Independent
Distributors must declare and pay their individual consolidated income tax (individual Independent Distributors) or business
entity income tax (business entity Independent Distributors) on the commissions earned in the previous year.
• When commissions are generated for foreigners residing locally in various countries, taxes must be withheld in accordance with
the applicable laws.
• According to Section 83A of the Income Tax Act 1967 (ITA 1967), Company is required to issue a form CP58 on commission
earned including but not limited to commission, incentivized programs, gifts, product vouchers and other similar reward to the
Independent Distributor.

4.8.2 Tax Submission for Independent Distributors Conducting Business Through a Business Entity
• Where Independent Distributors operate their business through a business entity, invoices must be issued and the business
entity shall pay the business entity’s income tax in accordance with the applicable law.
• The business entity is encouraged to seek professional advice and assistance for information regarding its personal and
business entity’s tax obligations. The Company shall not in any event be responsible for any of the personal and business
entity’s tax obligations.

4.9 Right to Amend

• In response to changes in market structure, laws and regulations, or other needs, the Company may amend this Business
Handbook, any documents provided by the Company to the Independent Distributors, the Company’s policies and systems, and
related procedures. Except for text additions and deletions without changing the original meaning or where the changes are
made only to the sequence of the clauses, the revisions may be notified to the Independent Distributors by the Company via
words, writing, telephone calls, text messages, emails, faxes, e-newsletter, announcements on the Company’s official website or
any other means that are sufficient to make the same known to the Independent Distributors. Independent Distributors agree
to and comply with the foregoing amendment by signing the Independent Distributorship Agreement.
• For all disputes arising from this contract, the Malaysian courts shall have the jurisdiction to hear any such disputes, however,
the parties shall first attempt to amicably resolve all disputes by way of mediation and only upon failure to mediate, parties are
allowed to commemce proceedings in court.
• This Business Handbook is available in both English, Chinese and Malay. If there are any differences between the English,
Chinese and Malay versions, the English version will prevail.
• The Company reserves the right to amend the contents stipulated in this Business Handbook and where applicable, the
amendments will be implemented upon receiving the necessary approval from the Ministry of Domestic Trade and Consumer
Affairs.

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