Section 26

The management company may remove the trustees by giving three months’ written notice to the trustees and the interest holders.

34 Laws of Malaysia ACT 778

The notice under subsection (2) shall be invalid if the removal is objected by at least fifty per centum of the interest holders.

The interest holders may remove the trustees by giving three months’ notice to the trustee and the management company after the decision was made through a resolution of the meeting of the interest holders and agreed by not less than ten per centum of the interest holders present in person or by proxy.

On the resignation or removal of the trustees, the management company shall appoint a new trustee by way of supplemental trust deed or supplemental contractual agreement.

Notwithstanding subsection (5), a resignation or removal of the trustees shall not take effect unless a new trustee is appointed.

The trustees shall, on the resignation or removal, within fourteen days from the date of appointment of a new trustee, vest the trust accounts to the new trustees and deliver all books, documents, records and other property relating to the scheme to the new trustees.

The cost and incidental expenses incurred under subsection (7) shall be borne by the management company.

Upon the execution of the supplemental trust deed or supplemental contractual agreement, the new trustees shall exercise all powers, duties and obligations in respect of the scheme.