Section 24
Duties of trustees
Every trustee shall—
32 Laws of Malaysia ACT 778
(a)
exercise all due diligence and vigilance in carrying out his functions and duties as a trustee and in monitoring the rights and interests of the interest holders to which the trust deed or contractual agreement, as the case may be, relates;
(b)
ensure that the covenants in the trust deed, supplemental trust deed, contractual agreement or supplemental contractual agreement and contents in the prospectus or product disclosure statement are delivered; and
(c)
carry out his duties in a timely manner.
(2)
The trustee shall immediately report to the Registrar, when—
(a)
there is any non-compliance of the Act, trust deed, contractual agreement, prospectus or product disclosure statement, as the case may be;
(b)
the scheme is unable to meet its obligation as they fall due; or
(c)
the management company is carrying on business in a manner that is, or likely to be, prejudicial to the interest holders.
(3)
The trustees shall notify the Registrar if the trustees know or have reasonable cause to believe there is an occurrence of any matter which has or likely to have a material adverse effect on the scheme.
(4)
For the purposes of subsection (3), “material adverse effect”
includes circumstances that may endanger the continued existence of the scheme or reduce the protection of interest holders in the scheme.