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Section 25

Trustee for Sukuk holders

of Labuan Islamic Financial Services and Securities Act 2010

ActIn forceProvision 25 of 161
Section 25
(1)

Every Labuan company which offers Sukuk pursuant to subsection 13(1) shall make provision in such Sukuk, or in a trust deed relating to such Sukuk, for the appointment of a Labuan trust company as a trustee for Sukuk holders.

(2)

A borrowing company shall not allot any Sukuk until such time as a Labuan trust company has been appointed as a trustee for Sukuk holders.

(3)

The Authority may approve any other person to act as a trustee together with the Labuan trust company for Sukuk holders.

(4)

A borrowing company and every officer of the borrowing company who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one million ringgit or to imprisonment for a term not exceeding three years or to both.

Act 705