Malaysia legislation
Section 26
of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010
Section 26
(a)
exempting a trustee for Sukuk holders from liability for contravention of any provisions of this Part or for breach of trust or failure to show the degree of care and diligence required of it as a trustee;
(b)
indemnifying a trustee for Sukuk holders against liability for contravention of any provisions of this Part or for breach of trust or for failure to show the degree of care and diligence required of it as a trustee, unless the term, provision or covenant—
(A)
releases the trustee from liability for anything done or omitted to be done before the release is given; or
(B)
enables a meeting of Sukuk holders to approve the release of a trustee from liability for anything done or omitted to be done before the release is given.
(2)
For the purpose of paragraph (1)(B)—
(a)
a release is approved if the Sukuk holders who vote for the resolution hold seventy-five per centum of the nominal value of the Sukuk held by all the Sukuk holders who attend the meeting and vote on the resolution; and
(b)
a Sukuk holder attends the meeting and votes on the resolution if—
(i)
such Sukuk holder attends the meeting in person and votes on the resolution; or
(ii)
if proxies are permitted, the Sukuk holder is represented at the meeting by a proxy and the proxy votes on the resolution.
Labuan Islamic Financial Services and Securities 47
Duties of trustee for Sukuk holders