Labuan Offshores Trusts Act 1996 · Updated to 1 Dec 2011 · Part IV · Trustees of Labuan Trusts
36A. Delegation of powers in relation to property management functions
Official textFrom Laws of Malaysia Online, unchanged
This section shall apply to every trust unless otherwise expressly excluded by the terms of the trust.
trust
―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a trust;
A trustee may not delegate his property management functions to any person as his agent except by an agreement which is in writing or evidenced in writing and unless—
trustee
―trustee‖ means a person appointed to act as a trustee of a trust in accordance with the provisions of this Act;
the trustee has provided that person with a statement that gives guidance in writing as to how the functions should
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be exercised (hereinafter referred to as ―policy statement‖); and
the agreement under which the agent is to act includes a term to the effect that he will secure compliance with—
the policy statement; and
if the policy statement is revised or replaced, the revised or replacement policy statement.
The trustees shall formulate any guidance given in the policy statement with a view to ensuring that the functions will be exercised in the best interests of the trust.
For the purposes of this section, the property management functions of trustees are their functions relating to—
property
―property‖ includes— (a) property of every kind, whether corporeal or incorporeal, movable or immovable, tangible or intangible, however acquired; or (b) legal documents or instruments in any form, including electronic or digital, evidencing title to or interest in, such property, including bank cheques, money orders, shares, securities, bonds, bank drafts and letters of credit;
the investment of assets subject to the trust;
the acquisition of property which is to be subject to the trust; and
the management of property which is subject to the trust and the disposal of, or the creation or disposal of an interest in, such property.
Terms defined in this Act
disposal
Defined · s 46B―disposal‖, in relation to designated shares, includes— (a) the exercise of voting powers leading, or capable of leading, to the liquidation of the company or the cancellation of the shares or of any rights attached to them; and (b) the creation of any legal or equitable interest in the shares;
Malaysia
Defined · s 2―Malaysia‖ means the territories of the Federation of Malaysia, the territorial waters of Malaysia and the sea-bed and subsoil of the Labuan Trusts 9 territorial waters, and includes any area extending beyond the limits of the territorial waters of Malaysia, and the sea-bed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia and in accordance with international law as an area over which Malaysia has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non-living;
person
Defined · s 2―person‖ includes a corporation, a partnership, a body of persons, corporate or unincorporated, and a corporation sole;
property
Defined · s 2―property‖ includes— (a) property of every kind, whether corporeal or incorporeal, movable or immovable, tangible or intangible, however acquired; or (b) legal documents or instruments in any form, including electronic or digital, evidencing title to or interest in, such property, including bank cheques, money orders, shares, securities, bonds, bank drafts and letters of credit;
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;
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 V