1MDB may be breaching the Companies Act 1965 if it fails to appoint new directors into the board after May 31, says lawyer Razlan Hadri Zulkifli.

"1MDB would be in breach of certain provisions of the Companies Act. The company cannot function if there is no board of directors," Razlan told Malaysiakini.

"Then it will be illegal and the company may face penalty under the Companies Act," he added.