Labuan Offshores Trusts Act 1996 · Updated to 1 Dec 2011 · Part IV · Trustees of Labuan Trusts
46D. Designated shares
Official textFrom Laws of Malaysia Online, unchanged
Subject to subsection (3), where a trust fulfils the conditions specified in subsection (4), the terms of the trust may direct this Part shall apply—
trust
―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a trust;
to all shares comprised in the trust fund; or
to such shares comprised in the trust fund as may be specified in the direction.
For the purposes of subsection (1), shares comprised in the trust fund shall be taken to include shares becoming so comprised at any time after the creation of the trust, whether added to the trust fund by way of additional settlement by the original settlor or any other person, acquired on a new issue by the company or in the
trust fund
―trust fund‖, in relation to a trust, means property for the time being subject to the trust.
62 Laws of Malaysia ACT 554
Malaysia
―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;
course of management or administration of the trust fund, or acquired in any other manner.
A direction under subsection (1) shall not be made in respect of shares added to the trust fund by a trustee of another trust in the exercise of a power in that other trust.
trustee
―trustee‖ means a person appointed to act as a trustee of a trust in accordance with the provisions of this Act;
The conditions referred to in subsection (1) are as follows:
the trust is created by or on the terms of a written testamentary or inter vivos instrument;
a designated trustee is the sole trustee of the trust;
the terms of the trust require that any successor trustee
(mediate or immediate) is a designated trustee acting as the sole trustee; and
the trust is not created in the exercise of a power conferred by another trust.
A direction under subsection (1) may identify the shares to which it relates either specifically or by any general description.
Subject to subsection (7), where a person is a settlor in relation to a trust of designated shares and additional property is settled on the terms of the trust by another person, the former person shall be considered for the purposes of this Part as the settlor in relation to the trust of the additional property.
person
―person‖ includes a corporation, a partnership, a body of persons, corporate or unincorporated, and a corporation sole;
If the trust instrument provides that subsection (6) shall not apply, then, in the case of a trust comprising property which has been provided by more than one person, this Act shall apply as if each person had created a separate trust in relation to the property which he has provided.
trust instrument
―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;
Terms defined in this Act
company
Defined · s 46B―company‖, in relation to designated shares, means a Labuan company or a Labuan limited liability partnership established under the Labuan Limited Partnerships and Limited Liability Partnerships Act 2010 that has issued the designated shares;
designated shares
Defined · s 46B―designated shares‖ means shares in a Labuan company or partnership interests in a Labuan limited liability partnership Labuan Trusts 59 established under the Labuan Limited Partnerships and Limited Liability Partnerships Act 2010 comprised in a trust fund and in respect of which a valid direction under subsection 46D(1) has been made;
designated trustee
Defined · s 46B―designated trustee‖ means a company registered as a Labuan trust company under Part V of the Labuan Financial Services and Securities Act 2010 to carry on business as a trust company in Labuan;
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;
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;
specified
Defined · s 2―specified‖, where no mode is mentioned in this Act, means specified from time to time in writing, and a power to specify includes the power to specify differently for different persons or different classes, categories or description of persons;
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 fund
Defined · s 46B―trust fund‖, in relation to a trust, means property for the time being subject to the 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;
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