Section 5
Further powers of investment of trustee
(1)
The investments specified in section 4 shall include any security to which this section applies and any units, or any shares of the investments subject to the trust, of a unit trust scheme approved by the Yang di-Pertuan Agong by notification published in the
Gazette.
(2)
Subject to this section, this section applies to any securities issued by a company (whether incorporated in Malaysia or elsewhere) prices for which are quoted on the Stock Exchange of
Malaysia.
(3)
This section does not apply to securities of any company unless—
(a)
the total issued and paid-up share capital of the company is, or if converted into ringgit from currency other than ringgit is, five million ringgit or more; and
(d)
the company has in each of the five years immediately preceding the calendar year in which the investment is made paid a dividend on all the shares issued by the company, excluding any shares issued after the dividend was declared and any shares which by their terms of issue did not rank for the dividend for that year,
*NOTE—Employees Provident Fund Act 1951 [Act 272] has been repealed by Employees Provident
Fund Act 1991 [Act 452]–see paragraph 75(a) of Act 452.
Trustee 15
and the rate exchange in relation to the conversion of issued and paid-up share capital shall be that certified by a bank manager, as defined in paragraph 6(3)(b), to be appropriate on the day a trustee exercises his power to invest in such securities.
(4)
For the purposes of paragraph 3(b), a company formed—
(a)
to take over the business of another company or other companies; or
(b)
to acquire the securities, or control, of another company or other companies; or
(c)
for either of those purposes and for other purposes, shall be deemed to have paid a dividend as mentioned in that paragraph in any year in which such a dividend has been so paid by the other company or all of the other companies, as the case may be.
(5)
This section does not apply to shares or debenture stock not fully paid up, except shares or stock which by the terms of issue are required to be fully paid up within nine months of the date of issue.
(6)
No provision relating to the powers of the trustee contained in any instrument made before 30 June 1965 shall limit the powers conferred by this section, but those powers are exercisable only in so far as a contrary intention is not expressed in any instrument so relating which is made after 29 June 1965.