Malaysia legislation
Section 30
of LABUAN ISLAMIC FINANCIAL SERVICES AND SECURITIES ACT 2010
Section 30
(2)
Where it appears to a trustee for Sukuk holders to which a report is furnished by a borrowing company that such purpose or project has not been achieved or completed within the time stated in the prospectus within which the purpose or project is to be achieved or completed or, where no such time was stated, then within a reasonable time, the trustee for Sukuk holders may, and, if in its opinion it is necessary for the protection of the interests of Sukuk holders, the trustee for the Sukuk holders shall, give notice in writing to the borrowing company requiring it to pay the monies so received by the borrowing company and, within one month after such notice is given, lodge with the Authority a copy of such notice.
(3)
A trustee for Sukuk holders shall not give a notice pursuant to subsection (2) if it is satisfied that—
(a)
the purpose or project has been substantially achieved or completed;
(b)
the interests of the Sukuk holders have not been materially prejudiced by the failure to achieve or complete the purpose or project within the time stated in the prospectus or within a reasonable time; or
(c)
the failure to achieve or complete the purpose or project was due to circumstances, other than shortage of funds, beyond the control of the borrowing company that could not reasonably have been foreseen by that borrowing company at the time that the prospectus was issued.
Retention of over-subscriptions in Sukuk issues