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Section 137

Power to grant relief

of Labuan Companies Act 1990

ActIn forceProvision 188 of 211
Section 137
(1)

In any proceedings for negligence, default, breach of duty or breach of trust against a person to whom this section applies, if it appears to the Court before which the proceedings are taken that he is

Labuan Companies 175

or may be liable in respect thereof but that he has acted honestly and reasonably and that, having regard to all the circumstances of the case including those connected with his appointment, he ought fairly to be excused for the negligence, default or breach, the Court may relieve him either wholly or partly from his liability on such terms as the

Court thinks fit.

(2)

Where any person to whom this section applies has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, breach of duty or breach of trust, he may apply to the Court for relief, and the Court shall have the same power to relieve him under this section as it would have had if it had been a Court before which proceedings against him for the negligence, default, breach of duty or breach of trust had been brought.

(3)

The persons to whom this section applies are —

(a)

officers of a Labuan company;

(b)

persons employed by a Labuan company as auditors, whether or not they are officers of the company;

(c)

experts within the meaning of this Act; and

(d)

all persons, including receivers and managers or approved liquidators, who are appointed or directed by the Court or the Authority to carry out any duty under this Act in relation to a Labuan company.