Labuan Offshores Trusts Act 1996 · Updated to 1 Dec 2011 · Part II · Creation and Recognition of Labuan Trusts
19. Termination of Labuan trust
Official textFrom Laws of Malaysia Online, unchanged
Without prejudice to the powers of the Court under subsection (4) and notwithstanding anything to the contrary in the terms of the trust, where all the beneficiaries of a Labuan trust are in existence and have been ascertained and none of them is a minor or a person under any legal disability, the Court may, on the application of any beneficiary or the trustee, order the trustee to terminate the trust and distribute the trust property among the beneficiaries if the
Court is satisfied that such termination is not contrary to any material purpose or object of the trust.
trust
―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a trust;
On the termination of the trust pursuant to subsection (1), the trustee shall distribute the trust property to the persons entitled thereto within a reasonable time and in accordance with the terms of the trust.
trustee
―trustee‖ means a person appointed to act as a trustee of a trust in accordance with the provisions of this Act;
The trustee may retain sufficient assets to make reasonable provision for liabilities, whether existing, future, contingent or otherwise, before distributing the trust property under subsection (2).
trust property
―trust property‖ means the property for the time being held on trust;
The Court may, on the termination of a trust or at any time thereafter, upon an application made by the trustee or any beneficiary—
beneficiary
―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;
require the trustee to distribute the trust property;
direct the trustee not to distribute the trust property; or
make such other order as it thinks fit.
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;
Labuan trust
Defined · s 2―Labuan trust‖ has the meaning assigned to it under subsection 8(1);
minor
Defined · s 2―minor‖ means a person who has not attained the age of majority under the proper law of a trust or, where no law has been chosen, the law of his domicile;
person
Defined · s 2―person‖ includes a corporation, a partnership, a body of persons, corporate or unincorporated, and a corporation sole;
terms of the trust
Defined · s 2―terms of the trust‖ means the written or oral terms of a trust or any other terms applicable under its proper law;
trust
Defined · s 2―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a 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