Malaysia legislation
Section 46E
Section 46E
(2)
The trustee’s duty to retain designated shares shall have precedence over any duty to preserve or enhance the value of the trust fund.
(3)
Without prejudice to subsection (2), the trustee shall not be accountable for losses arising directly or indirectly from holding designated shares, including losses arising from any of the following circumstances:
(a)
the absence or inadequacy of financial return from any designated shares;
(b)
a decrease in value of any designated shares;
(c)
any act or omission of the directors of the company, regardless of whether it is made or carried out in good faith;
(d)
liquidation or receivership of the company;
(e)
share market fluctuation;
(f)
the loss of opportunity to make gains from reinvestment of the proceeds of designated shares; or
(g)
the liabilities and expenses of the company, including directors’ remuneration and expenses.
(4)
Every reference in subsection (3) to the company shall include a reference to any corporation connected to it.
Restrictions on trustee’s powers