Labuan Offshores Trusts Act 1996 · Updated to 1 Dec 2011 · Part IV · Trustees of Labuan Trusts
46E. Trustee’s duties in relation to designated shares
Official textFrom Laws of Malaysia Online, unchanged
Subject to section 46I, designated shares shall be held by the trustee on trust to retain the designated shares.
designated shares
―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;
Labuan Trusts 63
The trustee’s duty to retain designated shares shall have precedence over any duty to preserve or enhance the value of the trust fund.
trustee
―trustee‖ means a person appointed to act as a trustee of a trust in accordance with the provisions of this Act;
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:
the absence or inadequacy of financial return from any designated shares;
a decrease in value of any designated shares;
any act or omission of the directors of the company, regardless of whether it is made or carried out in good faith;
liquidation or receivership of the company;
share market fluctuation;
the loss of opportunity to make gains from reinvestment of the proceeds of designated shares; or
the liabilities and expenses of the company, including directors’ remuneration and expenses.
Every reference in subsection (3) to the company shall include a reference to any corporation connected to it.
company
―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;
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;
corporation
Defined · s 2―corporation‖ means a body corporate formed or incorporated or existing within Malaysia or outside Malaysia and includes a foreign Labuan company but does not include— (a) a corporation sole; (b) a trade union registered under written law as a trade union; or (c) a society registered under any written law relating to co-operative societies;
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;
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.
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