Malaysia legislation
Section 25
of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010
Section 25
(2)
A borrowing company shall not allot any Sukuk until such time as a Labuan trust company has been appointed as a trustee for Sukuk holders.
(3)
The Authority may approve any other person to act as a trustee together with the Labuan trust company for Sukuk holders.
(4)
A borrowing company and every officer of the borrowing company who contravenes this section 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 705
Exemptions and indemnifications of trustee for Sukuk holders from liability