Section 56

If, in any proceedings for negligence, default, misconduct, omission or breach of duty against a council member, a supervisory person, an officer or a secretary of a Labuan foundation, it appears to the Court that he is or may be liable in respect of the negligence, default, misconduct, omission or breach of duty, but that he has acted honestly and reasonably and exercised due diligence, and that, having regard to all the circumstances of the case, including those connected with his appointment, he ought fairly to be excused for the negligence, default, misconduct, omission or breach of duty, the Court may relieve him, either wholly or partly, from his liability on such terms as the Court thinks fit.

Where a council member, a supervisory person, an officer or a secretary of a Labuan foundation has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, misconduct, omission or breach of duty, he may apply to the Court for relief, and the Court shall, on any such application, have the power to grant him relief in respect of such negligence, default, misconduct, omission or breach of duty.

Act 706

Where any case to which subsection (2) applies is being tried by a judge, the judge after hearing the evidence, may, if he is satisfied that the council member, supervisory person, officer or secretary ought in pursuance of that subsection to be relieved either in whole or in part from the liability sought to be enforced against him, withdraw the case in whole or in part and forthwith direct judgment to be entered for him on such terms as to costs or otherwise as the judge may think proper.

Money or other property from illegal activities