Labuan Foundations Act 2010 · Updated to 23 Apr 2025 · Part VI · Capacity of Labuan Foundation
51. Ratification of act done beyond capacity
Feedback & supportA council member or a beneficiary of a Labuan foundation, may bring proceedings to restrain the doing of any act which but for section 50 would be beyond the capacity of the Labuan foundation, save that no such proceedings shall lie in respect of an act to be done in fulfilment of a legal obligation arising from a previous act of the
beneficiary
“beneficiary” means a person designated as a beneficiary under the provisions of the constituent document of a Labuan foundation;
Labuan foundation.
It shall be the duty of the officers of a Labuan foundation to observe any limitations on their powers derived from the constituent document and any action by the officers beyond the powers provided as such shall only be valid upon ratification by the Labuan foundation in the following manner:
constituent document
“constituent document” means the charter and the articles, of a Labuan foundation;
where there is a council or other supervisory person, by a unanimous resolution of the council and such other supervisory person; and
where there is no council or supervisory person, by a resolution signed by all the officers of the Labuan foundation for the time being.
A resolution ratifying an action by the council member, supervisory person and officer beyond the capacity of the Labuan foundation shall not affect any liability incurred by the officers or any
supervisory person
“supervisory person” means any person or body of persons having supervisory powers over the Labuan foundation and is appointed under the charter of the Labuan foundation;
46 Laws of Malaysia other person and relief from any such liability shall be agreed to separately by resolution of the council and supervisory person.
Malaysia
“Malaysia” means the territories of the Federation of Malaysia, the territorial waters of Malaysia and the sea-bed and subsoil of the territorial waters, and includes any area extending beyond the limits of the territorial waters of Malaysia, and the sea-bed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia and in accordance with international law as an area over which Malaysia has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non living;