Section 21

For the avoidance of doubt, a Labuan trust company, bank licensee or Islamic bank licensee shall be the agent of a corporation which has offered securities pursuant to subsection 13(1)

through the Labuan trust company, bank licensee or Islamic bank licensee to receive applications for the issue of securities and shall be so described in the prospectus.

All monies payable on application for the securities in a corporation shall be paid to the Labuan trust company, bank licensee or Islamic bank licensee acting as an agent for the corporation, and pending receipt by the Labuan trust company, bank licensee or Islamic bank licensee of the amount of the minimum subscription, it shall hold all monies received by it

Labuan Islamic Financial Services and Securities 43

upon trust for the applicant, and if the amount of the minimum subscription is not received by the Labuan trust company, bank licensee or Islamic bank licensee within the time stated in the prospectus, the Labuan trust company, bank licensee or Islamic bank licensee shall, subject to any right under the terms of the prospectus to deduct any costs and charges owing to it or to the

Authority in connection with the prospectus or the offer or his acting as a broker in the matter, return the application monies or such proportion thereof as remains after making deductions, if any, in accordance with the terms of the prospectus to the applicants pro rata based on the respective amounts paid by them.

Upon receipt by a Labuan trust company, bank licensee or Islamic bank licensee acting as agent for a corporation of the amount of the minimum subscription on behalf of the corporation, the Labuan trust company, bank licensee or Islamic bank licencee shall, subject to its right to deduct from such monies its proper remuneration and disbursement, hold such monies and any further application monies as agent for the corporation.

Prohibition of allotment unless minimum subscription received