Malaysia legislation
Section 51
Section 51
(2)
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:
(a)
where there is a council or other supervisory person, by a unanimous resolution of the council and such other supervisory person; and
(b)
where there is no council or supervisory person, by a resolution signed by all the officers of the Labuan foundation for the time being.
(3)
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 other person and relief from any such liability shall be agreed to separately by resolution of the council and supervisory person.
Power of officers to bind the Labuan foundation