16. Labuan trust company or bank licensee as agent in offer

No allotment or issue shall be made of any securities of a corporation offered under subsection 8(1), being an offer of securities not excluded under subsection 8(5), unless the securities have been offered through a Labuan trust company or a bank licensee.

For the avoidance of doubt, a Labuan trust company or a bank licensee shall be the agent of a corporation which has offered securities under subsection 8(1) through the Labuan trust company or bank licensee to receive applications for the issue of securities and shall be so described in the prospectus.

All monies payable on application for the securities in a corporation shall be paid to the Labuan trust company or bank licensee acting as an agent for the corporation, and pending receipt by the Labuan trust company or bank licensee of the amount of the minimum subscription, it shall hold all monies received by it upon trust for the applicant, and if the amount of the minimum subscription is not received by the Labuan trust company or bank licensee within the time stated in the prospectus, the Labuan trust company or bank licensee shall, subject to any right under the terms of the prospectus to deduct any costs and charges owing to it or to the Authority in connection with the prospectus or the offer or his acting as a broker in the matter, return the application monies or such proportion thereof as remains after making deductions, if any, in accordance with the terms of the prospectus to the applicants pro rata based on the respective amounts paid by them.

Upon receipt by a Labuan trust company or a bank licensee acting as agent for a corporation of the amount of the minimum subscription on behalf of the corporation, the Labuan trust company or bank licensee shall, subject to its right to deduct from such monies its proper remuneration and disbursement, hold such monies and any further application monies as agent for the corporation.