Section 59

Every Labuan foundation and the officers of the Labuan foundation shall cause appropriate entries to be made in the accounting and other records of the Labuan foundation within sixty days of the completion of the transactions to which they relate.

The accounting and other records of a Labuan foundation shall be kept at the registered office of the Labuan foundation or at such other place in Labuan as the officers think fit and shall at all times be open to inspection by the council members, supervisory person, officers, and the approved auditor, if one is appointed.

An officer of a Labuan foundation who fails to take all reasonable steps to secure compliance by the Labuan foundation with the requirements of this section, or has by his own wilful act been the cause of any default by the Labuan foundation under this section, commits an offence and shall, upon conviction be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding six months or to both.

Any founder, council member, supervisory person, officer and secretary of a Labuan foundation shall be entitled to be furnished, within seven days after he has made a request to the Labuan foundation, with a copy of the financial statements, accounts and records and report of approved auditor, if any, at no charge and if default is made in furnishing such a copy, the

Labuan foundation and every officer is deemed to commit an offence and shall, upon conviction be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding six months or to both.

Act 706

Audit of Labuan foundation