Labuan Foundations Act 2010 · Updated to 23 Apr 2025 · Part VI · Capacity of Labuan Foundation
61. Unenforceability of foreign claim or judgment
Feedback & supportAll questions arising with regard to a Labuan foundation established and existing under this Act or in regard to any disposition of property to it shall be determined in accordance with this Act, without reference to the laws of any other jurisdictions with which the
56 Laws of Malaysia
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;
Labuan foundation or disposition may be connected, including questions as to—
the capacity of the founder;
any aspect of the validity of the Labuan foundation or disposition or the interpretation or effect of the Labuan foundation;
the administration of the Labuan foundation, whether the administration be conducted in Labuan or elsewhere, including questions as to the powers, obligations, liabilities and rights of the governing bodies or supervisory persons of the Labuan foundation and their appointment and removal; and
the existence and extent of powers, conferred or retained by the founder, including powers of variation or revocation of the charter of the Labuan foundation and the validity of any exercise of such powers.
Where a Labuan foundation is validly established in accordance with its constituent document or as provided by this Act, the Court shall not vary it or set it aside or recognize the validity of any claim against the property of the Labuan foundation pursuant to the law of another jurisdiction or the order of a Court of another jurisdiction in respect of the following:
constituent document
“constituent document” means the charter and the articles, of a Labuan foundation;
the personal and proprietary consequences of marriage or the termination of marriage;
succession rights, whether testate or intestate, including the fixed shares of spouses or relatives;
any claims or orders of a Court with regard to those matters referred to in paragraph (a) or (b) in reference to the personal laws of the founder or the beneficiaries; and
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the claims of creditors in an insolvency subject to the provisions of this section.