Section 23
Eligibility for appointment as trustees
The companies registered under the Trust Companies Act 1949 [Act 100] or any other person approved by the Minister, shall be eligible to be appointed as trustees.
(2)
Notwithstanding subsection (1), no person shall be eligible to be appointed as trustee, if—
(a)
the person is directly or indirectly associated with the persons who have control over the management company; or
(b)
the person is an adjudicated bankrupt.
(3)
For the purposes of this section, unless the contrary is proved, a person is presumed to have control over the management company if the person is entitled to exercise or control the exercise of not less than twenty per centum of votes attached to the voting shares of the management company.
(4)
If a trustee has been adjudicated bankrupt, the trustee shall no longer be eligible to act as a trustee and the management company shall immediately appoint a new trustee.
(5)
A trustee who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit.