Labuan Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part II · Securities
20. Trustee for debenture holders
Feedback & supportEvery Labuan company which offers debentures under subsection 8(1), being an offer of debentures not excluded under subsection 8(5), shall make provision in those debentures, or in a trust deed relating to those debentures, for the appointment of a Labuan trust company as a trustee for the holders of the debentures.
Labuan company
“Labuan company” has the meaning assigned to it in the Labuan Companies Act 1990;
A borrowing company shall not allot any debentures until such time as a Labuan trust company has been appointed as a trustee for the holders of those debentures.
borrowing company
“borrowing company” means a Labuan company that is or will be under a liability, whether or not such liability is present or future, to repay any money received or to be received by it in response to an offer made under section 8 to subscribe for or purchase debentures of the Labuan company;
The Authority may approve any other person to act as a trustee together with the Labuan trust company for the holders of the debentures.
If default is made by a borrowing company in complying with this section, the borrowing company and every officer of the borrowing company who is in default commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.
officer
“officer”, in relation to a corporation, includes— (a) a director, secretary or employee of the corporation including the principal officer; (b) a receiver and manager of any part of the undertaking of the corporation appointed under a power contained in any instrument; and (c) a liquidator of the corporation appointed in a voluntary winding-up; but does not include— (A) a receiver who is also not a manager; (B) a receiver and manager appointed by the Court; and (C) a liquidator appointed by the Court or by the creditors;