Section 12
Powers and obligations of founder
of Labuan Foundations Act 2010
Where there is more than one founder, the powers of the founder under the constituent document and this Act shall only be exercised by all the founders acting jointly and in common, unless the constituent document otherwise provides.
(2)
The founder may, in the Labuan foundation charter or by instrument in writing revocable or irrevocable, assign or transfer any or all of his rights, powers and obligations under this Act and the constituent document of the Labuan foundation to such person as the founder shall, in his absolute discretion, determine.
(3)
The person to whom the founder has assigned or transferred any or all of his rights, powers and obligations under this Act and the constituent document of the Labuan foundation shall be deemed to be a founder when exercising such rights and powers and performing such obligations.
(4)
Where a founder has made an undertaking, recorded in the charter of the Labuan foundation, to endow any property to the
Labuan foundation, the Labuan foundation—
(a)
may enforce that undertaking against the founder; and
(b)
shall enforce the undertaking in respect of the initial assets of the Labuan foundation, if at the end of a period of twelve months from the date of registration, the property representing the same has not become the property of the Labuan foundation.
Act 706