Malaysia legislation
Section 130W
Section 130W
(2)
The following terms shall be implied in every transaction entered into by a Labuan protected cell company:
(a)
that no party shall, whether in any proceeding or by any other means, use any cell assets attributable to any cell of the Labuan protected cell company to satisfy a liability not attributable to that cell;
(b)
that if any party shall succeed by any means in using any cell assets attributable to any cell of the Labuan protected cell company to satisfy a liability not attributable to that cell, that party shall be liable to the Labuan protected cell company to pay a sum equal to the value of the benefit thereby obtained by him; and
(c)
that if any party shall succeed in seizing or attaching or otherwise levying execution against any cell assets attributable to any cell of the Labuan protected cell company to satisfy a liability not attributable to that cell, that party shall hold those assets or their proceeds in a fiduciary capacity for the Labuan protected cell company and shall keep those assets or proceeds separate and identifiable for that purpose.
(3)
All sums recovered by a Labuan protected cell company as a result of any such obligation as is described in paragraph (2)(c) shall be credited against any concurrent liability imposed under the implied term set out in paragraph (2)(b).
(4)
Any asset or sum recovered by a Labuan protected cell company pursuant to the implied term set out in paragraph (2)(b) or
(c)
or by any other means in the events referred to in those paragraphs
160 Laws of Malaysia ACT 441
shall, after the deduction or payment of any costs of recovery, be applied by the Labuan protected cell company so as to compensate the cell affected.
(5)
In the event of any cell assets attributable to a cell of a Labuan protected cell company being seized, attached, levied or otherwise taken in execution in respect of a liability not attributable to that cell, and in so far as such assets or compensation in respect thereof cannot otherwise be restored to the cell affected, the Labuan protected cell company shall—
(a)
cause or procure its auditor, acting as an expert and not as an arbitrator, to certify the value of the assets lost to the cell affected; and
(b)
transfer or pay to the cell affected, from the cell assets or general assets to which the liability was attributable, assets or sums sufficient to restore to the cell affected the value of the assets lost.
(6)
Where a Labuan protected cell company is obliged to make a transfer or payment from cell assets attributable to a cell of the
Labuan protected cell company under paragraph (2)(b), and those assets are insufficient, the protected cell company shall so far as possible make up the deficiency from its general assets.
Liabilities