Crown Colony of North Borneo

The Crown Colony of North Borneo was a Crown colony on the island of Borneo established in 1946 shortly after the dissolution of the British Military Administration. The Crown Colony of Labuan joined the new Crown Colony during its formation. It was succeeded as the state of Sabah through the formation of the Federation of Malaysia on 16 September 1963.

Cession of remaining islands
On 16 October 1947, seven of the British-controlled islands in north-eastern Borneo named Turtle Islands, together with the Mangsee Islands, were ceded to the Philippine government under a past treaty signed between the United Kingdom and the United States. The islands now form a part of the Southwestern Tagalog Region (MIMAROPA) and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

Disputes
Despite its merger into the Malaysian federation in 1963, several international disputes remain over the who has right to the territories falling in the former Crown Colony of North Borneo. The Philippines remain in dispute with Malaysia over territorial rights to the region.

On 12 September 1962, during President Diosdado Macapagal's administration, a distant cousin of the Sulu Sultan, the Philippine government claimed the territory of North Borneo, and full sovereignty, title and dominion over it were "ceded" by the heirs of the sultan of Sulu, Muhammad Esmail E. Kiram I, to the Philippines. The Philippines broke off diplomatic relations with Malaysia after the federation was formed with Sabah in 1963, but partially resumed relations unofficially through the Manila Accord.

More recently, Malaysia has remained locked in an international $15 billion battle with purported heirs of the last Sultan of Sulu. The self-proclaimed heirs have been engaged in a legal battle with Malaysia regarding payments related to a colonial-era, 1878 agreement between then Sultan of Sulu and British commercial syndicate of Alfred Dent and Gustav Baron de Overbeck, which transpired into the British North Borneo Company. Per the agreement, the Sultan gave right of lands in North Borneo to the British against an annual fee. The claimants maintain that the land was only leased, while Malaysian counter arguments claim that the land was in fact ceded and so were the rights once the region joined the Malaysian federation.

Malaysia had continued to make payments per the 1878 agreement till the 2013 Lahad Datu Standoff. The Sulu claimants filed an arbitration appeal in the Madrid High Court in Spain, which appointed Dr Gonzalo Stampa the sole commercial arbitrator on the matter.

Malaysia filed a suit with the Civil and Criminal Chamber of the Superior Court of Justice of Madrid, which annulled the appointment of Stampa. However, Stampa moved the case to High Court of Paris. On February 28 2022, Stampa ruled in favor of the alleged descendants of sultan and ordered Malaysia to pay US$14.92 billion in settlement to the litigants. The award was eventually struck down by the International Court of Justice in June 2023.

Administration
The Governor of the Crown Colony of North Borneo (Malay: Tuan Yang Terutama Gabenor Koloni Mahkota British Borneo Utara) was the position created by the British Government upon the cession of North Borneo from the North Borneo Chartered Company. The appointment was made by King George VI, and later Queen Elizabeth II until the self-government of North Borneo on 31 August 1963 and the forming of the Federation of Malaysia on 16 September 1963. After the formation of Malaysia, the title was changed to 'Tuan Yang Terutama Yang di-Pertua Negeri Sabah', which also means 'His Excellency The Governor of Sabah', or 'His Excellency The Head of State of Sabah' and the appointment was later made by the Yang di-Pertuan Agong or King of Malaysia.

Executive and Legislative councils were established in October 1950, replacing the provisional Advisory Council which had existed since July 1946. The Executive Council, which advised the governor on matters of policy, consisted of three ex-officio members (the Chief Secretary, Financial Secretary, and Attorney-General), two appointed official members, and four appointed unofficial members. The Legislative Council consisted of the Governor as president, the three ex-officio members, nine appointed official members, and ten appointed unofficial members. The governor customarily appointed unofficial members from lists of names put forward by a representative bodies. Overall, the development of democratic institutions was much slower in North Borneo than it was in neighbouring Sarawak.

For local administration, the colony was divided into four residencies overseen by a resident, which were sub-divided into districts overseen by district officers. The district officer for the island of Labuan reported directly to the Chief Secretary. The districts were sub-divided into sub-districts overseen by assistant district officers. Most district officers were expatriates, while the majority of assistant district officers were locally recruited.

Within each district, village headmen were responsible for minor administrative tasks. Headmen reported to chiefs, who in turn reported to the district officer. The chiefs presided over native courts which dealt with breaches of native custom and Islamic law. District officers could also act in a magisterial capacity and had jurisdiction over civil actions, breaches of the laws of the Colony, and offences against the Penal Code.

In 1951, the Rural Development Ordinance provided for the establishment of local authorities in rural areas. The first such authority was set up in Kota Belud district on 1 January 1952 under the direction of the district and assistant district officers. Members of the local authority were entirely appointed, representing both the native population and the Chinese population of Kota Belud. This pattern was repeated throughout the territory as other rural authorities were established.

An ordinance regarding urban government came into force on 1 July 1954. It allowed the creation of township authorities, town boards, and municipal councils. Jesselton and Sandakan became town board areas, and in 1955 Tawau and Labuan joined them. Members of local councils were entirely appointed by the governor, though unofficial members were required to be in the majority.