Section 20
Trustee for debenture holders
of Labuan Financial Services and Securities Act 2010
Every 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.
(2)
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.
(3)
The Authority may approve any other person to act as a trustee together with the Labuan trust company for the holders of the debentures.
(4)
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.
Act 704