Labuan Offshores Trusts Act 1996 · Updated to 1 Dec 2011 · Part IV · Trustees of Labuan Trusts
46J. Enforcement
Official textFrom Laws of Malaysia Online, unchanged
Where in the case of a trust of designated shares there is a breach of a duty or obligation imposed by this Part on its trustee, any of the persons specified in subsection (3) may, subject to the terms of the trust, apply to the Court for relief.
trust
―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a trust;
The Court shall, if satisfied that the application under subsection (1) is well founded, grant relief by—
making such order as it considers appropriate to attain, as nearly as may be, the outcome that the Court considers would have been, or would most likely have been, attained in respect of the trust, the company, its directors and generally if the breach had not occurred; and
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making such, if any, supplementary or incidental order as the Court deems, in the circumstances of the case, reasonably required having regard to the primary purpose of this Part, provided that no order shall be made under this subsection to prejudice any interest in property which was acquired from the trustee in good faith, for value and without actual or constructive notice of the trust, or from the company in good faith and for full consideration, or to prejudice any interest deriving from such an interest.
The persons referred to in subsection (1) are as follows:
an interested person;
a director of the company; and
a person who, under the applicable office of director rules, would be a director if the trustee had complied with its obligations under section 46G.
Without prejudice to subsections (1) to (3), but subject to subsection (5), where in the case of a trust there is a breach of a duty or obligation imposed by this Act on its trustee, the breach shall be, and be actionable in civil proceedings as, a breach of the trust which shall be taken to include references to a prospective breach.
trustee
―trustee‖ means a person appointed to act as a trustee of a trust in accordance with the provisions of this Act;
Where civil proceedings are instituted in relation to a breach of a duty or obligation, the Court shall, in granting any remedy, take into account of any relief granted or available in respect of the breach on an application under subsection (1).
Subject to the terms of the trust and to sections 46G and 46H, where designated shares are held on trust, no act or omission of a director of the company shall be a ground for any person to seek intervention by the Court in the affairs of the trust.
terms of the trust
―terms of the trust‖ means the written or oral terms of a trust or any other terms applicable under its proper law;
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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;
interested person
Defined · s 46B―interested person‖, in relation to a trust, means— (a) a beneficiary of the trust; (b) an object of a discretionary power over any of the capital or income of the trust; (c) a parent or legal guardian of any minor falling within paragraphs (a) or (b); (d) an enforcer; (e) a protector; or (f) an appointed enquirer;
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;
office of director rules
Defined · s 46B―office of director rules‖ means rules referred to in subsection 46G(1) and any amendments made to the rules for the time being in force;
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;
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;
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