KUALA LUMPUR: Batu Kawan Umno deputy chief Datuk Seri Khairuddin Abu Hassan has been stripped of his position after being declared bankrupt last year.
Penang Umno secretary Datuk Musa Sheikh Fadzir in a statement today said the party's decision to demote Khairuddin was in line with Umno's constitution and the Societies Act 1966.
"Penang Umno has received a copy of a letter sent by party headquarters to Khairuddin regarding his removal from the Batu Kawan Umno deputy chief's post.
"The Societies Act stipulates that an individual who is declared bankrupt may not hold any positions in an association," Musa said.
Khairuddin was declared bankrupt on May 24 last year and a report of his bankruptcy was submitted to Umno's headquarters, said Musa.
"However, he (Khairuddin) remains an Umno member and may attend the party's annual general assembly at the branch level," he added.