Malaysia legislation
Section 130X
Section 130X
(a)
the cell assets attributable to that cell shall be used to satisfy the liability; and
(b)
a creditor in respect of that cell shall not be entitled to have recourse against the cell assets of any other cell or the general assets of the Labuan protected cell company.
Labuan Companies 161
(2)
Where a liability arises which is not attributable to a particular cell of a Labuan protected cell company—
(a)
the liability shall be satisfied solely from the Labuan protected cell company’s general assets; and
(b)
a creditor in respect of that liability shall not be entitled to have recourse to the cell assets of any cell of the Labuan protected cell company.
(3)
Without prejudice to the foregoing provisions—
(a)
cell assets attributable to a particular cell of a Labuan protected cell company—
(i)
are available only to the creditors of the Labuan protected cell company who are creditors in respect of that cell and who are thereby entitled to have recourse to the cell assets attributable to that cell; and
(ii)
shall be absolutely protected from the shareholders of the Labuan protected cell company and from the creditors of the Labuan protected cell company who are not creditors in respect of that cell and who accordingly are not entitled to have recourse to the cell assets attributable to that cell; and
(b)
cell assets not attributable to a particular cell of a Labuan protected cell company shall not be used to satisfy any liability attributable to that cell.
(4)
In the event of any dispute as to —
(a)
whether any right is or is not in respect of a particular cell;
(b)
whether a creditor is or is not a creditor in respect of a particular cell;
162 Laws of Malaysia ACT 441
(c)
whether a liability is or is not attributable to a particular cell; or
(d)
the amount to which any liability is limited, the Court, on the application of the Labuan protected cell company or of the creditor in dispute with the Labuan protected cell company, and without prejudice to any other right or remedy of any person, may issue a declaration in respect of the matter in dispute.
Disclosure