Section 54 — LABUAN FOUNDATIONS ACT 2010

(a)

relating to a council member and supervisory person—

(i)

declare the nature of his interest at a council meeting; or

(ii)

cause to be circulated in writing to all the other council members particulars of his interest; and

(b)

relating to an officer—

(i)

declare the nature of his interest at a meeting of the officers; or

(ii)

cause to be circulated in writing to all the other officers particulars of his interest.

(2)

Subsection (1) shall not apply in a case where the interest of the council member, supervisory person or officer of a Labuan foundation consists only in him being a member or creditor of another corporation or firm which is interested in a contract or proposed contract with that Labuan foundation, if that interest may properly be regarded as not being a material interest.

(3)

The declaration of interest by a council member, a supervisory person or an officer shall be made at the following instances—

(a)

in the case of a proposed contract—

(i)

the declaration shall be made at the council meeting or meeting of the officers, as the case may be, at which the proposed contract is first taken into consideration; or

(ii)

the declaration shall be made at the next council meeting or next meeting of officers, as the case may be, held after the council member, supervisory person or officer becomes so interested; and

Act 706

(b)

in the case of an existing contract, the declaration shall be made at the first council meeting or the first meeting of the officers, as the case may be, held after the council member, supervisory person or officer becomes so interested.

(4)

For the purposes of subsection (1), a general notice is deemed to be given by the interested council member, supervisory person or officer to the other council members or officers, as the case may be, of a Labuan foundation—

(a)

when it is given at a council meeting or meeting of the officers, as the case may be; or

(b)

where the council member, supervisory person or officer takes reasonable steps to ensure it is brought up and read at the next council meeting or meeting of the officers, as the case may be.

(5)

Every council member, supervisory person or officer of a

Labuan foundation who holds any office or possesses any property whereby, whether directly or indirectly, duties or interests might be created in conflict with his duties or interests as a council member, a supervisory person or an officer of the Labuan foundation, shall declare at a council meeting or meeting of the officers of the Labuan foundation or cause to be circulated in writing to the other council members or officers the fact and the nature, character and extent of the conflict.

(6)

Nothing in this section shall be taken to prejudice the operation of any provision in the constituent document of a

Labuan foundation restricting a council member, a supervisory person or an officer of a Labuan foundation from having any interest in contracts with the Labuan foundation.

Liability of council member, supervisory person, officer and secretary