In forceUpdated to 1 Dec 2011Read it in Bahasa Malaysia

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Labuan Offshores Trusts Act 1996 · Updated to 1 Dec 2011 · Part II · Creation and Recognition of Labuan Trusts

8B. Retention of certain rights by settlor

(1)

The reservation or grant by a settlor of a trust of any beneficial interest in the trust property or any of the powers mentioned in subsection (2), shall not affect the validity of the trust or the trust instrument.

(2)

The powers referred to in subsection (1) are as follows:

Labuan Trusts 17

(a)

to revoke, vary or amend the terms of a trust or powers arising wholly or partly under the trust;

(b)

to advance, determine, pay or apply income or capital of the trust property or to give directions for the making of such advancement, determination, payment or application;

(c)

to act as, or to give binding directions as to the appointment or removal of, a director or officer of any corporation wholly or partly owned by the trust;

(d)

to give binding directions to the trustee in connection with the purchase, retention, sale, management, lending, pledging or charging of the trust property or the exercise of any powers or rights arising from such property;

(e)

to appoint or remove any trustee, enforcer, protector or beneficiary;

(f)

to appoint or remove an investment manager or investment adviser;

(g)

to change the proper law of the trust; and

(h)

to restrict the exercise of any powers or discretions of a trustee by requiring that the powers shall only be exercisable with the consent of the settler or any other person specified in the terms of the trust.

Terms defined in s 2

beneficiary
Defined · s 2
―beneficiary‖ means a person entitled to benefit under a trust or in whose favour a discretion to distribute property held in trust may be exercised;
Open s 2
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;
Open s 2
enforcer
Defined · s 2
―enforcer‖ means a person referred to in section 11C;
Open s 2
Labuan
Defined · s 2
―Labuan‖ means the Federal Territory of Labuan;
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person
Defined · s 2
―person‖ includes a corporation, a partnership, a body of persons, corporate or unincorporated, and a corporation sole;
Open s 2
proper law
Defined · s 2
―proper law‖ means— (a) the law chosen by the settlor to be applicable to a trust, the choice being expressed or implied in the terms of the trust; or (b) where no law is chosen, the law with which a trust is most closely connected at the time of its creation;
Open s 2
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;
Open s 2
protector
Defined · s 2
―protector‖ means a person appointed in accordance with section 35;
Open s 2
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;
Open s 2
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;
Open s 2
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;
Open s 2
trust
Defined · s 2
―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a trust;
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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;
Open s 2
trust property
Defined · s 2
―trust property‖ means the property for the time being held on trust;
Open s 2
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;
Open s 2

Report

Read on from s 9

Part III

Beneficiaries of Labuan Trusts

Read on from Part III

Part IV

Trustees of Labuan Trusts

Read on from Part IV

Part V

Miscellaneous

Read on from Part V