Section 20

A borrowing company shall not allot any debentures until such time as a Labuan trust company has been appointed as a trustee for the holders of those debentures.

The Authority may approve any other person to act as a trustee together with the Labuan trust company for the holders of the debentures.

If default is made by a borrowing company in complying with this section, the borrowing company and every officer of the borrowing company who is in default commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.

Act 704

Exemptions and indemnifications of trustee from liability