Section 11C — AKTA AMANAH PESISIR LABUAN 1996

(2)

Without prejudice to subsection (1), the Court may, on the application of a trustee, the settlor or any other person whom the

Court considers has sufficient interest in the enforcement of the trust, appoint an enforcer or such number of enforcers if it deems fit.

(3)

No person shall at any time act as both trustee and enforcer of the same trust.

(4)

The settlor or his personal representatives may also be appointed as an enforcer of the purpose trust.

(5)

An enforcer shall not—

(a)

place himself in a position which may conflict with his duties to enforce the purposes of the trust;

(b)

derive directly or indirectly any profit by reason of his appointment other than any reasonable fee for his service and for any reasonable expenses which he may have incurred in the discharge of his duties; or

(c)

enter on his own account into any dealing with the trustee of the purpose trust or in relation to the trust property of the purpose trust of which he is an enforcer.

(6)

An enforcer shall be provided with—

(a)

the accounts, including the annual accounts of the purpose trust;

Labuan Trusts 25

(b)

copies of the trust instrument setting up the purpose trust and any deed or documents referred to in the instrument;

(c)

any legal opinions and advice received by the trustees;

and

(d)

any other documents or information to which he may be entitled to under the terms of the purpose trust.

(7)

An enforcer has the same rights as a person with a beneficial interest under an ordinary trust to take administrative actions and other actions, including making an application to the Court for its direction, for the good of the trust.

(8)

An enforcer has the rights of a trustee of an ordinary trust to protection, indemnity and payment of expenses out of trust property, and to make applications to the Court under section 49.

(9)

An enforcer has, on behalf of the trust, the same personal and proprietary remedies for breach of trust against a trustee and against third parties as a beneficiary of an ordinary trust.

(10)

An enforcer may resign his office by notice in writing and his resignation shall take effect on the delivery of the notice to the trustee of the purpose trust.

(11)

The resignation of an enforcer shall not release the enforcer from any liability in relation to the trust arising before his resignation.

Purpose trust not rendered void merely by uncertainty