Labuan Offshores Trusts Act 1996 · Updated to 1 Dec 2011 · Part II · Creation and Recognition of Labuan Trusts
11C. Enforcers
Official textFrom Laws of Malaysia Online, unchanged
The terms of a purpose trust shall provide for the appointment of an enforcer or such number of enforcers whose duty shall be to enforce the trust in accordance with its terms and purposes.
purpose trust
―purpose trust‖ means a trust referred to in section 11A, and includes a charitable trust;
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.
trust
―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a trust;
No person shall at any time act as both trustee and enforcer of the same trust.
person
―person‖ includes a corporation, a partnership, a body of persons, corporate or unincorporated, and a corporation sole;
The settlor or his personal representatives may also be appointed as an enforcer of the purpose trust.
settlor
―settlor‖ means a person who makes a trust and includes a person who provides trust property or makes a testamentary disposition on Labuan Trusts 11 trust or to a trust, but does not include a person who contributes to a unit trust;
An enforcer shall not—
place himself in a position which may conflict with his duties to enforce the purposes of the trust;
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
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.
An enforcer shall be provided with—
the accounts, including the annual accounts of the purpose trust;
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copies of the trust instrument setting up the purpose trust and any deed or documents referred to in the instrument;
any legal opinions and advice received by the trustees;
and
any other documents or information to which he may be entitled to under the terms of the purpose trust.
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.
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.
trustee
―trustee‖ means a person appointed to act as a trustee of a trust in accordance with the provisions of this Act;
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.
breach of trust
―breach of trust‖ means— (a) any act by a trustee which is in contravention of the duties imposed; (b) any act or neglect by a trustee which is not authorized or excused; or (c) any neglect or omission on the part of the trustee to fulfill the duties imposed upon him, by this Act, the proper law of the trust or the terms of the trust;
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.
The resignation of an enforcer shall not release the enforcer from any liability in relation to the trust arising before his resignation.
Terms defined in s 2
beneficiary
Defined · s 2―beneficiary‖ means a person entitled to benefit under a trust or in whose favour a discretion to distribute property held in trust may be exercised;
breach of trust
Defined · s 2―breach of trust‖ means— (a) any act by a trustee which is in contravention of the duties imposed; (b) any act or neglect by a trustee which is not authorized or excused; or (c) any neglect or omission on the part of the trustee to fulfill the duties imposed upon him, by this Act, the proper law of the trust or the terms of the trust;
person
Defined · s 2―person‖ includes a corporation, a partnership, a body of persons, corporate or unincorporated, and a corporation sole;
purpose trust
Defined · s 2―purpose trust‖ means a trust referred to in section 11A, and includes a charitable trust;
settlor
Defined · s 2―settlor‖ means a person who makes a trust and includes a person who provides trust property or makes a testamentary disposition on Labuan Trusts 11 trust or to a trust, but does not include a person who contributes to a unit trust;
trust
Defined · s 2―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a trust;
trust instrument
Defined · s 2―trust instrument‖ means an instrument by which a trust is created and includes a unilateral declaration of trust and any instrument varying the terms of the trust;
trust property
Defined · s 2―trust property‖ means the property for the time being held on trust;
trustee
Defined · s 2―trustee‖ means a person appointed to act as a trustee of a trust in accordance with the provisions of this Act;
Part III
Beneficiaries of Labuan Trusts
Part IV
Trustees of Labuan Trusts
Part V