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In forceUpdated to 1 Dec 2011Read it in Bahasa Malaysia
Contents

Part IV · Trustees of Labuan Trusts

36. Delegation of powers by trustee

(1)

Subject to the provisions of this Act, a trustee may delegate any or all of his delegable powers and functions to any person as their agent on such terms as to remuneration and other matters as he may determine.

(2)

In the case of a trust other than a charitable trust, the trustee may delegate any of the powers or functions under this Act and the trust except—

(a)

any function relating to the manner in which any property of the Labuan trust should be distributed;

(b)

any power to decide whether any fees or other payment due to be made out of the trust funds should be made out of income or capital;

(c)

any power to appoint a person to be a trustee of the trust;

or

(d)

any power conferred by the trust instrument which permits the trustee to delegate any of their functions or to appoint a person to act as a nominee or custodian.

(3)

In the case of a charitable trust, the trustee may delegate the following functions:

(a)

any function relating to carrying out a decision that the trustee has taken;

(b)

any function relating to the investment of property subject to the trust (including, in the case of land held as an investment, managing the land and creating or disposing of an interest in the land); and

(c)

any function relating to the raising of funds for the trust otherwise than by means of profits of a trade which is an integral part of carrying out the trust’s charitable purpose.

Labuan Trusts 45

(4)

For the purposes of paragraph (3)(c), a trade shall mean an integral part of carrying out a trust’s charitable purpose if the profits are applied solely to the purposes of the trust and either—

(a)

the trade is exercised in the course of the actual carrying out of a primary purpose of the trust; or

(b)

the work in connection with the trade is mainly carried out by beneficiaries of the trust.

(5)

A trustee shall not delegate his functions to any person as his agent on any of the following terms unless it is reasonably necessary to do so:

(a)

a term permitting the agent to appoint a substitute;

(b)

a term restricting the liability of the agent or his substitute to the trustee or any beneficiary; or

(c)

a term permitting the agent to act in circumstances capable of giving rise to a conflict of interest.

(6)

A trustee who in good faith and without neglect makes an appointment or a delegation in accordance with the provisions of this

Act shall not be liable for any loss arising to the trust in consequence thereof or from the default of any appointee or delegate if the trustee has exercised due skill and care in the selection of the appointee or delegate.

Report

Read on from s 36A

Part V

Miscellaneous

Read on from Part V