Section 19
of Labuan Financial Services and Securities Act 2010
Section 19
Subject to this Division and to the terms and conditions of its memorandum and articles, a Labuan company shall have the power to issue debentures on such terms and conditions as it thinks fit and in particular, but without limiting the generality of the foregoing, may issue debentures—
(a)
constituting a charge on any or all of the assets of the company;
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(b)
convertible from debentures into shares in the company;
or
(c)
as secured debentures.
(2)
The debt payable under any debenture, whether sealed or signed on behalf of the company, shall be a specialty debt of the company, and where the debenture is issued by a branch of a company, shall be located at that branch.
(3)
The Minister may make regulations—
(a)
restricting the right of a Labuan company or any particular class of Labuan companies to issue debentures which may be converted into shares; and
(b)
prescribing the terms and conditions or the event or events upon which conversion shall or may take place.