Malaysia legislation

Section 48

of *LABUAN COMPANIES ACT 1990

Section 48

(a)

in the ordinary course of its business, if the lending of money is part of the ordinary business of the Labuan company;

(b)

where the transaction has been approved by a special resolution of the company, and the directors have certified to the meeting, in writing, to the effect that there are no reasonable grounds for believing that —

62 Laws of Malaysia ACT 441

(i)

the company is, or would after giving the financial assistance be, insolvent; or

(ii)

the realizable value of the company’s assets, excluding the amount of any financial assistance in the form of a loan and in the form of assets pledged or encumbered to secure a guarantee, would, after giving the financial assistance or loan, be less than the aggregate of the company’s liabilities and stated capital; or

(c)

to employees (other than an employee who is also a director) of the company or of any of its subsidiaries or of its holding company.

(2)

(Deleted by Act A1367).

(3)

(Deleted by Act A1367).

Purchase by a Labuan company of its own shares, etc.