The Labuan Offshore Trust Act 1996

Original Language Title: Labuan Offshore Trusts Act 1996

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JW514135 Act 554 BM tiny Labuan Offshore 1Amanah laws of MALAYSIA Act REPRINTING 554 LABUAN OFFSHORE TRUST ACT 1996 Contains all amendments to 31 May 2009 PUBLISHED by the COMMISSIONER of law revision, UNDER the AUTHORITY of law REVISION ACT 1968 2009 2 laws of Malaysia ACT 554 LABUAN OFFSHORE TRUST ACT 1996 Royal Assent Date............... 13 September 1996, the date of publication in the Gazette............ 26 September 1996 Labuan Offshore 3Amanah laws of MALAYSIA Act 554 LABUAN OFFSHORE TRUST ACT 1996 ARRANGEMENT of SECTIONS part I preliminary section 1. Short title 2. Interpretation 3. The existence of a trust 4. Charitable trust and purpose 5. Trust pemborosan or cover 6. Law to a trust and the power to change the law that should be PART II the CREATION and RECOGNITION of an OFFSHORE TRUST 7. The existence of offshore trusts 8. Establishment of offshore trust 9. The validity of the offshore trust 10. May not be the currency of claim or judgment abroad 11. Offshore trust or fraudulent disposal 12. Offshore trust registration 13. Trust instrument registration 14. The name and registered office of offshore trusts 15. Check and restrictions for exposure of 16. Offshore trust period 17. Variation and cancellation 18 offshore trust. Failure or expiration of interest 4 laws of Malaysia ACT 554 section 19. Termination of the offshore trust 20. Pendomisilan the foreign trust to Labuan 21. Migration from Labuan Offshore trust PART III BENEFICIARY OFFSHORE TRUST 22. Beneficiary 23. Disclaimer 24. The importance of managing and beneficiary thereof 25. The importance of class PART IV TRUSTEE for OFFSHORE TRUSTS 26. Appointment of Trustees 27. Acceptance of appointment as trustee 28. Resignation as trustee 29. Vacancy in a trust 30. Duty of trustee 31. Duties of Trustees with 32. Equity Trustees 33. Power of Trustees 34. A letter or memorandum of wishes 35. Appointment of guardian 36. Delegation of powers by the Trustees 37. 38. Power of Attorney The collection, advance or earmarking assets trust 39. Appointment or assignment of property trust 40. Remuneration and expenses 41. Confidentiality relating to trust 42. Liability for breach of trust 43. Trustee acting with respect to more than one trust 44. Dealing with third party 5Amanah Labuan Offshore Section 45. Constructive trustee is 46. Indemnity for Trustees retiring part V MISCELLANEOUS 47. Variation of the terms of the trust on behalf of the minor, etc.
48. Approval of certain transactions 49. The power of the General Court 50. Cost of 51. Protection for those who deal with the Trustees 52. Time limit action 53. Money or other property from illegal activities Law 54. Offences and penalties General 55. The power to prosecute 56. Compounding of offences 57. Regulations 58. Exemption 59. Prohibition of registration or conduct business 60. Procedure where no procedure specified 61. Exception in respect of the trust that existed before this Act comes into force 62. Disapplication of certain law 6 laws of Malaysia ACT 554 7Amanah Labuan Offshore laws of MALAYSIA Act 554 LABUAN OFFSHORE TRUST ACT 1996 an act to provide for the establishment and recognition of offshore trusts; and for matters connected or incidental thereto.
[as of 31 October 1996, P.U. (B) 472/1996]
BE IT enacted by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: part I preliminary short title 1. This Act may be cited as the Labuan Offshore Trust Act 1996.
Interpretation 2. (1) in this Act, unless the context otherwise requires — "Declaration of trust one party" has the meaning assigned to it by section 8;
"trust" includes property trusts and the rights, powers, duties, interest, relationship and obligations under a trust;
8 laws of Malaysia ACT 554 "offshore trust" has the meaning assigned to it by subsection 7 (1);
"offshore trust registered" means an offshore trust registered under subsection 12 (4);
"trust" means any trust established for the purpose, or having the effect, to provide facilities for the participation by the person as a beneficiary under the trust in any profits or income arising from the acquisition, holding, management or disposal of any property;
"beneficiary" means a person who is entitled to benefit under a trust or in his stead at the discretion to divide property held on trust can be carried out;
"register" includes any type of records;
"prescribed" means prescribed by or under this Act or any regulations made under this Act;
"property" means any property, movable or immovable, and includes rights and interests, whether present or future and whether vested or contingent;
"the trust property" means the property is held on trust;
"immovable property located in Malaysia" includes shares, stocks or debentures in or for a company of its assets include immovable property located in Malaysia in addition to a public company that is mentioned in the official list of a stock exchange of any country or jurisdiction in any country;
"Labuan" means the Federal territory of Labuan;
"Board" has the meaning assigned to it by the Act of the Board of Labuan Offshore financial services 1996 [Act 545];
"Court" means the High Court or a high court judge;
Labuan Offshore 9Amanah the "Malaysia" means province in the Federation of Malaysia, the Malaysian territory waters and seabed and soil waters territory, and includes any area beyond the territorial boundaries of Malaysia, and seabed and soil under any of the area, which has been or will be later than this are made under the laws of Malaysia and in accordance with international law as an area which Malaysia has a right to sovereignty for the purpose of setting and exploit natural resources whether living or not;
"Minister" means the Minister for the time being charged with the responsibility for offshore company;
"person" includes a group of persons, incorporated or unincorporated;
"minor" means a person who has not attained the age of adults under the law to a trust or, if no law has been chosen, under law domisilnya;
"qualified person" means a person who is not resident in Malaysia;
"breach of trust" means — (a) any act by a trustee who berlanggaran the obligations imposed;
(b) any act or omission by any person as a trustee or forgiven; or (c) any neglect or omission on the part of the Trustees to meet the obligations imposed thereon by this Act, the law that should be for the trust or the terms of the trust;
"resident" means any person — (a) who is a citizen or permanent resident of Malaysia; or (b) which had established a place of business and is operating in Malaysia, other than a company offshore or foreign offshore companies incorporated or 10 laws of Malaysia ACT 554 registered under the companies act Offshore 1990 [Act 441], and includes any person designated as a resident pursuant to section 43 the Exchange Control Act 1953 [Act 17];
"trust maker" means a person who makes a trust and includes any person holding assets of the trust or make a testamentary disposition on trust or to a trust, but does not include a person who makes a contribution to a trust;
"trustee" means a person appointed to act as a trustee of a trust in accordance with the provisions of this Act;
"Corporation" means a body corporate, where wherever formed or incorporated;
"trust instrument" means an instrument which ran through a trust established and includes a declaration of trust a party and any instrument that changes the terms of the trust;
"trust company" means a company registered under section 4 of the Labuan trust companies Act 1990 [Act 442] to conduct business as a trust company;
"the terms of the trust" means the terms of the written or verbal for a trust or any other terms that apply under the proper law of the trust;
"the law should be" means — (a) the applicable law selected by the manufacturer of the trust that apply to a trust, that's specified or is implicit in the terms of the trust; or (b) If no law is selected, legal trust has to do with it something closest at the time it was created.
Labuan Offshore 11Amanah

(2) for the purposes of the definition of "proper law" in subsection (1), in determining the applicable law, trust has to do with it something which is closest, reference should be made, in particular, to — (a) the place of administration of the trust named by the manufacturer of the trust;
(b) place is the location of the trust property;
(c) place of resident or business of the trustee; and (d) the goal of the trust and the place where that is required to be implemented.
(3) any reference to "this Act" in this Act shall, unless otherwise expressly stated, be deemed to include a reference to any regulations, rules, orders, notifications or other subsidiary legislation made under this Act.
(4) words and expressions used in this Act that refers to any other law shall, to the extent necessary to give effect to this Act and in accordance with the provisions of other laws that, have the same meaning with words and phrases in the law relating thereto the words and expressions used in this Act.
The existence of a trust 3. A trust exists if a person holding or be deemed to be holding or her vested or deemed to be vested property which is not his own and kepunyaannya upon him under an obligation as trustee to act on the property — (a) for the benefit of any beneficiary, whether or not defined or exist;
(b) for any purpose that is not for the benefit of the Trustees; or (c) for the benefit and the purposes referred to in paragraph (a) and (b) both.
12 laws of Malaysia ACT 554 Trust charitable and purpose 4. (1) a trust shall be deemed to be a trust for charitable purpose under this Act if the trust made for any one of the following purposes or more and if fulfill the purpose or purposes of such is for the benefit of the community or a substantial part of the community with regard to the type and nature of the purpose or purposes of the: (a) reduction or eradication of poverty;
(b) development of education;
(c) the promotion of art, science and religion;
(d) environmental protection;
(e) development of human rights and fundamental freedoms; or (f) any other purpose that are availed to the community.
(2) a purpose can be considered charitable if it is required to take place in Malaysia or elsewhere and whether it availed to the community in Malaysia or elsewhere.
(3) Notwithstanding any law to the contrary, a trust can be created or established for the purpose or purposes specified, whether charitable or not, but the trust must be vested in a real person within sustainable applicable or specified apply to the trust, and any trust created or established such may be enforced by the makers of trust or personal representative or by the person or persons named in the instrument creating the trust or set up as a person appointed to give effect to the trust and the trust may be enforced upon the needs of the person or persons named as such even though that person is not a beneficiary under the trust.
Trust pemborosan or cover 5. (1) the terms of a trust can make a person's beneficiary interests in trust property or any income or capital of the property — (a) may be terminated;
Labuan Offshore 13Amanah (b) subject to a restriction on alienation or disposal; or (c) subject to diminution or termination in the event that a beneficiary becomes insolvent or any of his property be seized or be disekuestrasi for the benefit of his creditors.
(2) a trust under which the interest of someone a beneficiary is subject to termination, restriction or reduction under subsection (1) is a trust pemborosan or security.
(3) a provision in the terms of a trust requires that the interests of a person in a property trust or beneficiary in any income or capital of the trust property held on pemborosan or security must be interpreted as a requirement that the interest of the beneficiary was subject to termination, restriction or reduction as is mentioned in subsection (1).
Law to a trust and the power to change the laws that are supposed to be 6. (1) subject to the provisions of this Act, a trust shall be determined by the proper law of the trust and shall be construed and enforced accordingly.
(2) the terms of a trust can provide so that the proper law of the trust is converted from the laws of a jurisdiction the laws of a jurisdiction to another and vice versa, subject to the provisions of this Act and to the recognition of such exchange by law related to the other jurisdiction, in particular about the validity of the trust and the interests of the beneficiary.
(3) a change of law that should not affect the validity in law, or render any person liable for, anything made before the changeover.
14 laws of Malaysia ACT 554 PART II ESTABLISHMENT of OFFSHORE TRUST and RECOGNITION of the existence of offshore trust 7. (1) a trust is a trust offshore if — (a) the trust maker was a qualified person at the time the trust was created;
(b) the trust property does not include any immovable property located in Malaysia, unless authorised by the relevant authorities and laws in force;
(c) subject to subsection (2) and (3), all beneficiary under the trust is a qualified person at the time the trust was created or at the time any one of them or more be entitled otherwise to be a beneficiary under the trust; and (d) at least one of the Trustees are trust companies.
(2) a trust is a trust offshore even though a person who is not a qualified person benefit along with any others as a member of a class of persons who is a beneficiary under a trust for charitable purposes.
(3) a trust shall continue to be offshore trusts even though one or more of a trust of which is a qualified person at the time the trust is created later became resident in Malaysia at the time they are otherwise entitled to be beneficiaries.
(4) for the purposes of this section, the phrase "at the time the trust is created", in relation to a trust created by a will, means the time the Testament comes into operation.
Establishment of offshore trusts 8. (1) an offshore trust shall not be valid unless it is established by a wills or other instruments in Labuan Offshore 15Amanah in writing, include a declaration of trust a party, but a trust must be created only through a will or other instrument in writing.
(2) a declaration of trust one party is an acknowledgement in writing by a trust company which States — (a) that it is the trustee of an offshore trust;
(b) the name of the trust;
(c) the terms of the trust; and (d) the name or information that enable all beneficiary is known.
(3) a declaration of trust a party need not contain the names of the manufacturers trust, but in the case of such a declaration shall contain a statement by the company the trust that the trust is a maker of highly qualified at the date of declaration is made.
The validity of the offshore trust 9. (1) an offshore trust, created with a valid according to or as otherwise provided by this Act, whether in Labuan or abroad, shall be recognised and enforceable in accordance with the conditions, by a court in Malaysia located in Labuan or at any other place designated by the Chief Justice of the Federal Court notwithstanding the provisions of any other laws.
(2) an offshore trust is not valid and cannot be enforced in Labuan if — (a) it requires, purports or promotes the Commission of any act which is an offence under the laws of Malaysia or, if done in Malaysia, became such an offence: provided that if the act occurred in any country other than Malaysia, it must also be punishable as a criminal offence under the law of that other State or a jurisdiction in another country where the It happens;
16 laws of Malaysia ACT 554 (b) it has the income accrued to him, or obtained by him, resulting from an operation, transaction or other activity that is or will become an offence as is mentioned in paragraph (a);
(c) it consists of property receipt, ownership or controls be or will become an offence as is mentioned in paragraph (a); or (d) the Court declares that the goal for which it was created has failed or that the terms of the trust is such that to its implementation is impossible.
(3) If an offshore trust established for two or more purposes which in part is valid and others invalid — (a) the whole of the trust shall be invalid if an invalid purpose could not be separated accordingly; or

(b) If an invalid purpose that can be separated accordingly, the Court may make a finding that the trust is valid about the purpose or purposes of the valid notwithstanding the validity of the trust to the extent and under the conditions determined by it.
(4) If a trustee of a trust the opinion of offshore trusts that is or may be, wholly or partly, invalid, he shall seek direction from the Court as to the validity of the trust and of any matters in respect of the trust property and its obligations in relation to the trust.
(5) a trust maker or beneficiary of an offshore trust can also ask for directions from the Court as to the matters referred to in subsection (4).
May not be the currency of claim or judgment abroad 10. (1) If an offshore trust created with a valid according to or as otherwise provided by this Act, the Labuan Offshore 17Amanah the Court can't change it or waiver or recognise the validity of any claims against the trust property according to the law of a jurisdiction or court order of a another jurisdiction in respect of — (a) as a result of self and proprietorship of a marriage or termination of the marriage;
(b) the right of inheritance, whether or not bequeath, including fixed parts of a husband or wife or relatives;
(c) any claim or court order relating to the matters referred to in paragraph (a) or (b) with respect to personal law maker trust or beneficiary; or (d) the creditor's claim in the insolvency which is subject to the provisions of section 11.
(2) for the avoidance of doubt, it is hereby declared that in the event there is any inconsistency between existing laws should be for a trust with personal laws or trust beneficiary maker, then the law ought to be overcome the laws themselves.
Offshore trust or fraudulent disposal 11. (1) if it is proved without a doubt that is reasonable, its burdens lies on the creditor's claim, that an offshore trust established or registered in Labuan, or property disposed of to the offshore trust — (a) has been established or registered or disposed of as such by or on behalf of the trust with the intention of major maker to maker the memfraud the creditor trust; and (b) was, at the time of creation or registration or the disposal occurs, making the trust maker or insolvent does not have a property with it claim the creditor that, if successful, can be resolved, then the creation, registration or the disposal shall not be valid or may cancel and the offshore trust shall be liable to settle claims of creditors of the estate for the establishment of , registration or disposal 18 laws of Malaysia ACT 554 that will be available to explain the creditor claims and liabilities is only to the extent the trust maker interests in such property before the creation, registration, or disposal, and any increase in the property, if any, after that.
(2) for the purposes of subsection (1), in determining whether an offshore trust established or registered or a disposal has made trust maker or insolvent does not have a property with it a claim of the creditor, if successful, could be settled, shall be taken into account the fair market value of property the trust maker (which is not a property of the trust or in connection with the trust) at the time immediately after the creation, registration, or of the disposal, and where the fair market value of such property exceeds the value of the creditor's claims at the time, then offshore trust established or registered or disposal shall be for the purpose of this Act is deemed to have not created such or registered, or the property is disposed of, with the main intention to memfraud the creditor.
(3) an offshore trust established or registered in Labuan and a disposition of property to the trust not be fraud against someone the creditor a person trust maker — (a) if the establishment or registration or the disposal, occurs after the expiry of two years from the date the cause of action accrued Payables; or (b) if the establishment or registration, or the disposal, occurs before the expiration of two years from the date the cause of action accrued Payables and Payables that failed to start such action before the expiration of one year from the date of establishment or registration, or the disposal.
(4) an offshore trust established or registered in Labuan and a disposition of property to the trust shall be a fraud against creditors a person trust if the creation of maker or registration, or disposal of property occurs before the cause of action the creditor against the maker of the trust accrues or arises.
19Amanah Labuan Offshore (5) a manufacturer of trust cannot be linked with an intention to memfraud someone creditor solely by virtue of the trust-maker — (a) has established or register an offshore trust or has disposed of property to the trust within two years from the date the cause of action accrued Payables; or (b) is a beneficiary.
(6) If an offshore trust is liable to settle a claim creditors in the manner provided in subsection (1) but was unable to do so due to the fact that the property has been disposed of, in addition to a bona fide buyer with value, then any such disposal shall be invalid.
(7) for the purposes of this section, the date of the cause of action accrued is — (a) the date of the Act or omission that can be used to prove the cause of action, whether in part or in full; and if there is more than one act or if the omission is omission continues, the date of the first act or the date the omission occurred, as the case may be; and (b) in the case of an action upon a judgment, the date of the Act or omission, or if there is more than one act or the omission was omission continues, the date of the first act or the date the omission started to occur, as the case may be, that give rise to the judgment.
(8) in this section, the term "creditor" includes any person who says there is a cause of action.
Offshore trust registration 12. (1) every offshore trust created with a valid according to or as otherwise provided by this Act, whether in Labuan or overseas, can be registered with the Board.
20 laws of Malaysia ACT 554 (2) a trustee of an offshore trust is responsible for registering offshore trust and any change after that connected therewith under this Act, if an offshore trust is registered pursuant to subsection (1).
(3) the registration of an offshore trust shall be effected by filing with the Board of the following matters: (a) a statement containing — (i) the name of the offshore trust;
(ii) the date of pewujudannya;
(iii) the name and address of the trustee acting as trustee;
(iv) the address of the registered office of the offshore trust;
(v) law to the offshore trusts; and (b) a declaration by trust company acting as trustee of the offshore trusts that the requirements of this Act for it to become an offshore trust.
(4) the Board shall, upon being satisfied that all the requirements of this Act for the establishment of an offshore trust have been complied with and the prescribed fee has been paid, register the trust and issue a certificate of registration accordingly.
(5) any later changes in the details of registered offshore trust referred to in subsection (3) shall be notified to and registered with the Board in the prescribed form within one month of the change and will not be effective until it is registered as such.
(6) a trustee for the registered offshore trust shall notify the Board of the termination of the trust in the prescribed form within one month from the termination.
(7) a trustee for the registered offshore trust shall notify the Board in the prescribed form as to whether the trust still exists and whether he 21Amanah still be a Labuan Offshore Trustees not less than one month after each anniversary of the registration of the trust in Labuan.
(8) any trustee who fails to comply with the requirements of this section commits an offence.
Penalties: ten thousand dollars.
(9) for the purposes of subsection (8), if there are two or more trustees, the requirements of this section shall be deemed to have been observed by all the Trustees as long as one of them adhere to it.
Registration of the instrument of trust 13. (1) a trustee of an offshore trust registered can give the Board a copy of the trust instrument or any amendment thereto that has been certified by the trustee and the Board shall register and file a copy of it as true copies.
The name and registered office of the offshore trust

14. (1) Every trust instrument shall contain the name of the offshore trust with him are known and registered and the name shall continue until the trust is terminated unless the Board, taking into account the circumstances of the case, think about the name change should be allowed.
(2) the registered office of an offshore trust is a trust registered office was appointed as trustee for the trust and shall be the address for service of any document to the trust.
Check and restrictions for exposure of 15. (1) the Board shall keep and maintain a register of all offshore trust registered under subsection 12 (4) and shall be recorded in the register any change in the particulars have been notified accordingly to the Board and any other matters deemed appropriate by the Board.
22 laws of Malaysia ACT 554 (2) at the request of the Trustees of a trust, and when sufficient evidence is given until the Board is satisfied, the Board may issue a certificate stating, based on information available to the Board, that at the date of such certificate — (a) the applicant is the trustee of the trust; or (b) a copy of the trust instrument as he copied and certified have been registered with the Board in accordance with section 13.
(3) subject to the terms of the trust and any court order to the contrary thereto, all documents filed with or kept by the Board relating to the offshore trusts are not open to the public for inspection, and the Board cannot disclose to any person any such document or any information that comes to its knowledge in the implementation of its duties under this Act.
Offshore trust period 16. An offshore trust shall, unless specified otherwise in and subject to the terms of the trust, continued to exist for a term of not more than one hundred years; but it may be terminated at any time in accordance with the provisions of this Act.
Variation and cancellation of the offshore trust 17. (1) an offshore trust can expressly provide for — (a) that the conditions be changed; or (b) that the trust itself or the powers may be exercised under the trust may be cancelled, whether in whole or in part.
(2) where a trust offshore provides that the terms of the trust can be changed, the power to vary shall be without prejudice to the powers vested in the Court by this Act for the alteration of the terms of the trust.
23Amanah Offshore Labuan (3) No variation of the terms of an offshore trust or cancellation of an offshore trust or power exercisable under a trust offshore can affect anything lawfully done by a trustee in relation to a trust offshore before he receives notice of such alteration or cancellation.
(4) subject to the terms of the trust, where an offshore trust is revoked, whether in whole or in part, then the Trustees shall hold trust property that is affected by the revocation of trust maker or, if implicitly trust maker already died, for the personal representatives of the estate or trust the maker.
Failure or expiration of interest 18. (1) subject to the terms of an offshore trust and any order of the Court, the trust property or interest under the trust shall be held by a trustee in trust for the makers of trust as a whole or, if the trust dies, maker of the personal representatives of the estate or trust the maker if — (a) the interests in question expired;
(b) the trust property vested in a person other favour alone but trust for which he is due to hold the property is not declared or communicated to him;
(c) No beneficiary and there are people who can be a beneficiary in accordance with the terms of the trust; or (d) the trust ends other than in accordance with section 19.
(2) if the assets of the trust or interest under the trust held by the Trustees for charitable purpose already no longer exist or are no longer applicable, property or interests shall be held for charitable purposes such as declared by the Court as in line with the original intention of the trust maker or as determined by the Court otherwise.
(3) an application to the Court under this section may be made by any trustee or beneficiary, as the case may be.
24 laws of Malaysia ACT 554 (4) in this section, "trust maker" means a person holding a particular trust property or interest under the trust referred to in subsection (1).
Termination of the offshore trust 19. (1) without prejudice to the powers of the Court under subsection (4) and notwithstanding the terms of the trust, if all beneficiaries of an offshore trust and established and none of them is a minor or a person who is not disabled in legally, they may require the trustee so that terminate the trust and divide the trust property among them.
(2) upon termination of the trust, the trustee shall divide the trust property to the person entitled to it within a reasonable time and in accordance with the terms of the trust.
(3) the trustees can keep sufficient assets to provide reasonable liability, whether existing, future, contingent or otherwise, prior to divide the trust property under subsection (2).
(4) the Court may, upon the conclusion of a trust or at any time thereafter, upon application made by the trustees or any beneficiary — (a) require the trustee divides the trust property;
(b) direct the trustee so as not to divide the trust property; or (c) make any other order that it thinks fit.
Pendomisilan the overseas to Labuan trust 20. Subject to the provisions of this Act, a trust established or established under the laws of any country other than Malaysia, or by any authority in a country so, may, if so authorized by the laws of the country or jurisdiction, or the terms of the trust and the law to the trust, enforceable, recognised or registered in Labuan as if it has been established under this Act.
25Amanah Offshore Labuan Offshore Trust Migration from Labuan 21. (1) subject to the provisions of this Act and the terms of the trust and the law to the trust, an offshore trust created with a valid or recognized under this Act shall be transferred to and become a trust under the laws of a State or a jurisdiction in the country.
(2) an offshore trust that have been transferred to Labuan previously under the provisions of section 20 can be transferred to and become a trust under the laws of a State or a jurisdiction within the country in accordance with this section.
PART III OFFSHORE TRUST BENEFICIARY Beneficiary 22. (1) subject to subsection 4(3), a beneficiary shall — (a) can be identified with the name; or (b) can be determined by reference to a class or to a relationship with someone, whether or not living at the time, under the terms of the offshore trust, is time its related members of a class shall be determined.
(2) if there are no beneficiaries identifiable or determined in accordance with subsection (1), the trust is not valid unless its meaning is purpose charitable.
(3) a trust maker or someone offshore trustee can be a beneficiary of that trust as well, but if he is sole trustee, he may not be a beneficiary also underneath.
(4) the terms of an offshore trust may provide for — (a) the addition of a person as a beneficiary;
(b) waiving of beneficiary of the benefit; or 26 laws of Malaysia ACT 554 (c) imposition on someone a beneficiary of an obligation as a condition for getting benefits.
Disclaimer 23. (1) a beneficiary may refuse the whole stake.
(2) a disclaimer made under subsection (1) shall be in writing and cannot be null.
(3) subject to the terms of an offshore trust, a beneficiary may refuse the claim part of his interest, whether or not he has received any benefits from its importance.
(4) a disclaimer made under subsection (3) may, subject to the terms of the trust, be able to cancel and it shall be conducted in the manner and in the circumstances specified.
The interests of beneficiaries and about it 24. (1) Although property trust an offshore trust including immovable property, the interests of a person the beneficiary of any offshore trust shall consist of movable property only.
(2) where the terms of the trust provide for such, a beneficiary may, by instrument in writing, sell, mortgage, transfer or otherwise deal about his interest in such a way.
The importance of class 25. (1) subject to the terms of the trust, the following shall apply where a trust, or an interest under a trust, belonging to a class of persons:

(a) a class closed when no possibility for any other person became a member of the class;
Labuan Offshore 27Amanah (b) a woman who is currently in excess of fifty five years shall be deemed to not be pregnant anymore;
(c) if any interest income relates to class and for such period no member in class exists, revenue shall be collected and subject to section 16, shall be kept so that there is a member of the class that the class exists or closed.
(2) in this section "interest classes" means a trust or an interest under a trust belonging to a class of persons.
PART IV of the TRUSTEE for OFFSHORE TRUST Trustee Appointment 26. (1) the trustee is appointed by or as provided in the trust instrument and according to any number of provided it.
(2) there are no restrictions imposed on the number of Trustees that can be allocated in the trust instrument but — (a) if there is only one trustee, the trustee must be a trust company; and (b) if there is more than one trustee, one of the Trustees shall be a trust company.
(3) If no trustee is appointed or assigned by the trust instrument or there is a vacancy among the Trustees that cannot be filled otherwise, any trustee menakat or continued, any beneficiary or former trustee on, according to the needs of the circumstances, may apply to the Court for the appointment of a new trustee.
28 laws of Malaysia ACT 554 (4) the Court may make an order appointing a new trustee if — (a) in the case where an application under subsection (3) made by the beneficiary, the Court is satisfied that the application made by the beneficiary was presented to former trustee on or to at least one of the trustees who menakat or continuous, if any;
(b) it has been listening to the representations made by a former trustee on the trustee, or the constant menakat or any beneficiary; and (c) it has determined that the persons specified in the application or as otherwise intended so that appointed a new trustee willing to do so.
(5) subject to the terms of the trust, a new trustee appointed under this section shall have the power, discretion and obligations are the same and can be in all things act as if he were from was first appointed as a trustee by the instrument of trust.
(6) when a person newly appointed trustee, any requirements for trust property at vest, or under the control of, the trustee shall be made.
Acceptance of appointment as trustee 27. (1) No person is obliged to accept the appointment as trustee but if a trust company appointed as trustee to do any act or thing relating to the trust property in line with the status of stakeholders the trust the trust, then the company shall be deemed to have accepted the appointment as trustee.
(2) a trust company does not accept or be deemed to have accepted the appointment as the Trustees may refuse the appointment within a reasonable time after it is aware of the appointment by giving a written notice to the manufacturer or to the trustee of the trust to another.
29Amanah Offshore Labuan (3) If a trust maker dead or cannot be found or no longer exists and no other trustee, then the trust companies that refuse appointment as trustee under subsection (2) may apply to court for the appointment of direliefkan and the Court may make any order it thinks fit.
Resignation as trustee 28. (1) subject to subsection (2) and the terms of the trust, a trustee may resign by submitting to — (a) the maker of the trust or, if no manufacturer trust, at least one beneficiary; and (b) in the case of registered offshore trust, the Board, a written notice of his intention and the resignation shall take effect at the time the notice is submitted.
(2) a resignation is not effective if — (a) it is provided to facilitate a breach of trust; or (b) it will result in no trustee, unless, before the resignation is to take effect, the application made to the Court for the appointment of a new trustee and one new trustee has been appointed.
Vacancy in a trust 29. (1) a trustee shall cease to be a trustee and its place as trustee shall be considered vacant when — (a) he is fired as trustee by the Court;
(b) resignation comes into operation;
30 laws of Malaysia ACT 554 (c) come into force a provision of these terms of trust under which the trustee was discharged from his post or otherwise cease to hold office; or (d) the steps taken to winding trust acts as trustee.
(2) a person cease to be a trustee under this section shall do all necessary to vest the property trust at the new trustee or to the trustee or the constant menakat.
Duty of trustee 30. (1) a trustee shall, in discharging its duties and exercise of the powers and discretion, acting with due diligence as a prudent Act truthfully and with the best skills and with setulus-tulusnya.
(2) subject to the provisions of this Act, a trustee shall exercise and administer trust funds in accordance with the conditions and shall — (a) ensure that the trust property vested to it or otherwise under its control; and (b) to the extent reasonable, preserve and increase the value of the trust property.
(3) except as otherwise permitted by this Act or which is expressly provided by the terms of the trust, a trustee may not — (a) making a profit, directly or indirectly, from the peramanahannya;
(b) cause or allow any person, other than a person appointed or properly delegated by the trustees under this Act or by a court or pursuant to the terms of the trust to benefit directly or indirectly from the Trusteeship services; Labuan Offshore 31Amanah or (c) on his behalf makes any transaction with the Trustees, or relating to the trust property, which can produce profits that, without the approval of the Court.
(4) a trustee shall keep proper accounts and proper records about peramanahannya and shall give an account of the trust account as required by the terms of the trust or by an order of the Court.
(5) a trust maker or any beneficiary may apply to the Court for an order to require the Trustees give an account on the peramanahannya to any of them.
(6) a trustee shall keep the assets of the trust in different and separate from his own property and are identifiable separately from any other property for which he is a trustee or to which he is entitled beneficially.
Duties of Trustees with 31. (1) subject to subsection (2) and the terms of the trust, if there is more than one trustee, all trustees shall be — (a) acts in association in the furtherance of their duties and exercise their powers; and (b) shall not exercise any power or discretion unless all Trustees agree.
(2) where the terms of the trust gives the trustee the power to serve a majority of — (a) a trustee who does not agree with the decision of the majority of Trustees shall cause ketidaksetujuannya recorded in writing;
32 laws of Malaysia ACT 554 (b) Notwithstanding anything contained in these terms of trust, is not valid or has the effect of any act, decision, power or discretion which shall be made, taken or carried out by the Trustees a majority if it's done, taken or carried out without the consent of trust company acting as a trustee for the trust.
Equity Trustees 32. Subject to the terms of the trust and without prejudice to the implementation of the discretion granted to the trustee by the terms of the trust, a trustee shall be fair and shall not execute the trust for the benefit of a person or beneficiary of a charitable purpose or purposes with affect the charitable beneficiary of the other if there is more than one beneficiary or a charitable purpose under the trust, or a person for the benefit of beneficiaries with prejudice the purpose of charitable or otherwise If the trust has a beneficiary and a charitable purpose only.
Trustee Authority 33. (1) subject to the terms and provisions of this Act, a trustee shall have all the authority of the owner of the property in relation to the trust beneficiaries.

(2) a trustee shall exercise its powers in the interest of beneficiaries and in accordance with the terms of the trust.
A letter or memorandum of intent 34. (1) trust a trust Maker can give the Trustees a letter about their intention or trustee can prepare a memorandum about the maker of the trust in relation to the exercise of any functions conferred upon the trustee by the terms of the trust.
(2) a beneficiary of a trust can give the Trustees a letter about their intention or the 33Amanah Labuan Offshore trust can provide a memorandum of intention the beneficiary in relation to the exercise of any functions conferred upon the trustee by the terms of the trust.
(3) where a trust in favour of a class of persons, then a member of the class that can give the Trustees a letter about their intention or the trustee can provide a memorandum of intent to the Member in connection with the exercise of any functions conferred upon the trustee by the terms of the trust.
(4) where a letter of intent or a memorandum of intention provided to or prepared by the trustee of a trust, he can take into account a letter or memorandum that in the exercise of any functions conferred upon him by the terms of the trust but is not responsible in any way for the failure or keengganannya to take into account a letter or memorandum of it.
(5) no fiduciary duties or obligations can be imposed on the trustee solely by reason of a letter of intent has been granted to him or her has prepared a memorandum of intention.
The appointment of a protector 35. (1) the terms of a trust can expressly provide for the appointment of a protector of the trust shall be negotiated by the Trustees in the discharge of all or certain powers as provided in the terms of the trust, but if the guardian cannot be found, the Court may on application by the Trustees set aside requirement.
(2) J if terms of trust i tu requires the trustee to obtain the agreement of the protector before running a power or discretion, protector that gives such consent not to do so may be considered as a trustee.
(3) unless otherwise expressly excluded by the terms of the trust, a protector is has the power to dismiss the trustee or appoint a trustee 34 laws of Malaysia ACT 554 new or additional trustee, but if the protector fired a trust company as trustee, guardian shall appoint a trust company as trustee of new ones instead.
Delegation of powers by the Trustees 36. (1) a trustee cannot delegate his authority unless authorised to do so by this Act or by the terms of the trust or by the Court.
(2) a trustee may, unless the terms of the trusts in particular provide for the contrary — (a) appoint or delegate the trust property management investment manager deems reliably by the trustee as a competent and qualified to manage the investment of the trust property;
(b) appoints an agent, whether solicitor, banker, stockbroker or any other person, to carry on any business or make any action required to run or made in complete trust that or hold any property of the trust; and (c) authorize any Manager or the agent to save any commissions or other charges normally payable for services from the description given.
(3) a trustee who in good faith and not ignore making an appointment or a representative in accordance with the provisions of this section shall not be charged for any loss to the trust as a result of the representation or the appointment or default of any person appointed or if the trustee has acted with skill and care as appropriate in the selection of the person appointed or representative of that.
Power of Attorney 37. (1) unless the terms of the trust allocated otherwise, the trustee may, with the power of Attorney, Labuan Offshore 35Amanah delegate for a period not exceeding twelve months, the implementation of any trust or functions vested in them, either alone or in association, as trustee, except the power to grant a power of attorney under this section.
(2) a trustee of a trust or delegate the function with a power of attorney under this section shall be referred to as "power of Attorney" providers in this section and the person to trust or the delegated function called "receiver power of Attorney".
(3) a person who is the only other common trustee for the lenders a power of attorney may not be the recipient of a power of attorney.
(4) the power of Attorney must be a giver, within seven days from the granting of a power of attorney under this section, give written notice of the delegation to — (a) any other person under the terms of the trust has the power, either alone or in association, to appoint a new trustee;
(b) Every trustee together; and (c) in the case of registered, the Board of Trustees.
(5) notice under subsection (4) shall state — (a) the date of commencement and the duration of the power of Attorney;
(b) the name and address of the recipient of the power of Attorney;
(c) the reasons for granting the power of Attorney; and (d) a trust or function delegated.
(6) the failure of the provider to the power of attorney to comply with subsection (4) or (5) shall not itself, with the favour of the person dealing with the donee thereof, menidaksahkan anything made by the recipient of the power of attorney.
(7) the power of attorney shall be governed by the giver and be liable for all actions or default recipient of a power of Attorney made or purporting to be made under a power of Attorney that seem to act or default of that is his own act or disbelief.
36 laws of Malaysia ACT 554 (8) the provisions of this section shall not apply to a trust company acting as trustee.
The collection, advance or earmarking assets trust 38. (1) if the terms of the trust directing or allowing collection for a period all or part of the income of the trust, the trustee shall distribute trust income not collected as directed or authorized by the terms of the trust.
(2) subject to the terms of the trust, and subject to any interest or obligation before affecting the trust property, if a beneficiary is a minor and whether or not his interest is vested interest or importance to be vested when he reaches the age of adult or age which exceeds the age of adult or in the event of any event, the trustee may — (a) collect the income related to the beneficiary's interest pending he attained the age of adult or age beyond the age of adult or the occurrence of any such event;
(b) pay to the parent or guardian or otherwise uses the income or part of the income for penyaraan, educational or other benefits the beneficiary; or (c) advance or provision to or for the benefit of any such beneficiary income or part of the income.
(3) a receipt given by the parent or legal guardian of a person the beneficiary a minor shall be a sufficient discharge to trustees for payments made under subsection (2).
(4) subject to the terms of the trust and to any interest or obligation previously touched the trust property, the trustee can make advance or use for the benefit of beneficiary part of trust property before the date of the occurrence of an event in the event will make the beneficiary entitled to the trust property.
37Amanah Labuan Offshore (5) subject to the terms of the trust, the trustee can assign property trust for or to meet the interest of the beneficiary in any manner and by any assessment it deems fit by the Trustees.
(6) subject to the terms of the trust, any part of the assets of the trust first, used or assigned under this section shall be taken into account in determining the part of the beneficiary in the trust estate.
(7) no part of the assets of the trust first, used or allocated as provided in this section may exceed part presumption, contingent or vested for the beneficiary in the trust estate.
Appointment or assignment of property trust 39. If the terms of the trust give the trustees or any person power to set suited or assign all or any part of the trust estate or any interest in the trust property to any person or to the trustee for the benefit of any person, the authority shall, subject to the terms of the trust, have effect whether or not that person is a beneficiary of the trust immediately before the assignment or setting.
Remuneration and expenses

40. (1) A person is not entitled to a trustee such remuneration for services rendered unless authorised — (a) by the terms of the trust;
(b) by written agreement of all beneficiaries identifiable or unable to determine; or (c) by an order of the Court.
(2) a trustee may reimburse himself or pay from trust funds all expenses and liabilities reasonably done by it in relation to the trust.
38 the laws of Malaysia ACT 554 Confidentiality relating to trust 41. (1) subject to the terms of the trust and to any order of the Court given for special and unusual, a trustee or any other person shall not be required to so disclose to any person any document or information that discloses: (a) pertimbangtelitiannya on how she should carry out or have carried out its functions as trustee;
(b) the reasons for any decision made in the exercise of such functions;
(c) any material which the decision has been or may be made;
(d) any part of the trust account; or (e) any letter of intent provided by the manufacturer of the trust or the beneficiary.
(2) Notwithstanding subsection (1), if a request so that revealed any document or information relating to or forming part of the trust account made by a beneficiary under the trust or, in the case of a trust for charitable purposes, by a charitable referred to by name in his instrument of trust as a beneficiary under the trust, the trustee is obliged to disclose documents or other information requested.
(3) except as may be required, authorized or otherwise provided by this Act, or by the terms of the trust or as may be necessary for the purposes of the trust, and notwithstanding the provisions of any other laws — (a) Every trustee and every other person shall at all times consider and deal with all documents and information in relation to a trust as a secret and confidential;
(b) no trustee or other person may at any time be required to submit to or before any court, tribunal, Board, the investigation committee or any other authority or disclose to any of the Labuan Offshore 39Amanah the authority of any matter or thing that comes to his knowledge of or has in his possession for any reason whatsoever, if the thing or the thing in relation to a trust.
(4) any trustee or any other person, except as may be required, authorized or otherwise provided by this Act, or by the terms of the trust or by the Court, at any time, deliver or attempt to deliver any matter or thing in relation to a trust to any person guilty of an offence.
Penalty: Imprisonment for five years or thirty thousand ringgit or both.
Liability for breach of trust 42. (1) subject to the provisions of this Act and the terms of the trust, a trustee who commits or participate in a breach of trust is, without prejudice to any other liability, be liable to — (a) any loss or depreciation of the trust property as a result of the breach of trust; and (b) any profits that would have been accrued to the trust if there is no such breach of trust.
(2) in the case of a breach of trust committed or accompanied by a trust company acting as trustee, every person who, at the time of the breach of trust, is an independent trust company shall, subject to subsection (3), be deemed to be a guarantor of the company the trust in respect of any damages and costs that may be awarded by the Court against the company the trust in respect of the breach of trust.
(3) the Court may relieve a person of Directors either wholly or in part of the liability himself as a guarantor if he makes the Court satisfied that to be fair he should discharge such as — (a) he is not aware of the breach of trust or of intention to do so and, because he was not aware, he is not acting recklessly or carelessly; or 40 laws of Malaysia ACT 554 (b) she expressly to object, and exercising any rights available to it in the form of power to vote or otherwise as a shareholder or a Director or other officer of the company, to try to prevent the breach of trust.
(4) a trustee shall not be liable for a breach of trust committed before his appointment if CBT is done by others, but the trustee shall take all reasonable steps to meremedikan as a result of or any damage arising from the breach of trust.
(5) a trustee shall not be liable for breach of trust committed by a trustee with unless — (a) he was aware or should have been aware of the breach of trust or trustee with the intentions of the breach of trust; and (b) he actively concealed the breach of trust or the intention or not within a reasonable time to take appropriate steps to protect or restore the trust property, or prevent the breach of trust.
(6) subject to the terms of the trust, a trustee is not liable — (a) for the default of any person as a trustee with unless he — (i) participate in default of the trustee; or (ii) does not take reasonable precautions for preventing it;
(b) for any loss to the assets of the trust, unless the losses caused by — (i) default, act or deliberate consent; or (ii) keabaiannya or failure to carry out reasonable precautions to prevent the losses.
41Amanah Offshore Labuan (7) if there are two or more criminal breach of trust, a trustee cannot override a procurement of a breach of trust against loss caused by a breach of trust to another.
(8) where two or more trustees be liable in respect of a breach of trust, their liability shall be separate and in association.
(9) a beneficiary may, in respect of liability for a breach of trust that's already been done, release the person from the trustee, or assume the liability, against ruginya, but only if the beneficiary — (a) has the ability in law;
(b) has full knowledge of all the material facts; and (c) are not driven in a way that should not be by the trustee to provide relief or indemnity that.
(10) the Court may release the trustee either wholly or partially from liability for a breach of trust if it is satisfied that the trustee has acted honestly and reasonably and to be fair he should be forgiven in the case of the circumstances.
(11) for the purposes of this section — "Director" includes any person who holds the position of Director of a company, with the name of whatever he is called, and includes a person who acts or issue a direction or instruction in such manner as the Director of a company usually issue a direction or order or action, and alternate Director or alternate Director, even if there is any defect in the appointment or qualification of such persons;
"officers" in relation to a company includes — (a) any Director, Secretary or employee of the company;
(b) a receiver and Manager of any part of the undertaking of the company appointed under a power contained in any instrument; and the 42 laws of Malaysia ACT 554 (c) any liquidator of a company appointed in the winding up voluntarily, but does not include — (i) any recipient who is not also a General Manager;
(ii) any receiver and manager appointed by the Court; or (iii) any liquidator appointed by the Court or by creditors.
Trustee acting with respect to more than one trust 43. (1) a trustee acting for more than one trust shall not, without fraud, touched by the notice as to any instrument, matter, fact or thing in relation to any particular trust if the trustee has acquired a notice about it because he acted or is acting for the purpose of a trust to another.
(2) a trustee of a trust shall disclose to any trustee with any interest him as trustee of a trust if any transaction relating to the trust who first called it to do with the other trustee.
Dealing with third party 44. (1) where in any transaction or matter involving a trust, a trustee to inform third parties that he is acting as a trustee, then a claim by a third party that's related to it should only cover the trust property only.
(2) if in any transaction or matter such a person the trustee does not notify a third party 43Amanah Labuan Offshore that he acts as trustee and third parties that are not otherwise aware of the fact that, the trustee — (a) shall be liable to the third party in respect thereof; and

(b) shall have the right to use the assets of the trust for incurring the liability of ruginya, unless the trustee's action is breach of trust.
(3) no nothing in this section shall affect the liability of the trustee for breach of trust or any other liability under any law.
(4) in this section, "third party" means a person other than the manufacturer of the trust, the trustee or the beneficiary of the trust.
Constructive trustee is 45. (1) subject to subsection (2), if a person makes or receive any profit, gain or the benefit of a criminal breach of trust he shall be deemed to be as constructive trustee for the profit, gain or benefit of it.
(2) subsection (1) does not apply in respect of bona fide buyer with the property value and without notice of breach of trust.
(3) a constructive trustee or a person who becomes a constructive trustee shall menghantarserahkan assets he became a trustee of the constructive to the person entitled to the property properly.
(4) this section shall not waive any other circumstances a person may have been told or become a constructive trustee.
Indemnity for Trustees retiring 46. (1) a trustee who resigned or was fired or otherwise cease from being a trustee shall accordingly submit a property trust 44 laws of Malaysia ACT 554 in its possession or control to the Trustees of the menakat or continues, or if there is, the trust property shall be left unattended until appointed Trustees or the Trustees new ones.
(2) the trustees who resigned or was fired or otherwise cease to be a trustee may, before the property trust submitted as required by subsection (1), reimburse himself or pay out of the trust for any expenses and liabilities reasonably done earlier by him relating to the trust.
(3) a trustee who resigned or was fired or otherwise cease to be a trustee and has complied with the requirements of subsection (1) shall be of be liable to any beneficiary, trustee or other person who has an interest under the trust in respect of any act or omission relating to the assets of the trust or its duties as trustee, except in respect of actions arising from any breach of trust to which the trustee or , in the case of a trust company acting as the trustee, any officer or employees, be a party to or known by him.
(4) a trustee who resigned or was fired or otherwise cease from being a trustee shall continue to be liable to any beneficiary, trustee or other person who has an interest under the trust that is recoverable from the trustee or, in the case of a trust company acting as trustee of such, from any officer or employees, trust property or the proceeds thereof which has in his possession or received earlier by him and taken to his own use or is not submitted as required by subsection (1).
(5) subject to the terms of the trust, the trustee cannot indemnify itself to a greater extent than is provided for in this section.
Labuan Offshore 45Amanah part V a WIDE RANGE of variation of the terms of the trust on behalf of the minor, etc.
47. (1) subject to subsection (2), the Court may, upon application of a person or his/her trust maker, protector of a trust, a trustee or a beneficiary, on behalf of — (a) any minor, or any person who is not disabled on the side of the law, who has an interest, directly or indirectly, whether vested or contingent under the trust;
(b) any person, whether ascertained or not, which become entitled, directly or indirectly, received an interest under the trust at a future date or upon the happening of a future event;
(c) a person of any specified description or a member of any particular class of persons;
(d) any person who has not been born; or (e) any person in respect of any interest that may accrue to him by virtue of any authority given to any person on the failure or determination of any existing interest that has not failed or determined, approve any arrangements change or cancel the terms of a trust or add or modify power management or administration of any trustee , whether or not there are other people with the interests of beneficiaries who are capable of complying with the arrangement.
(2) the Court shall not approve an arrangement on behalf of any person referred to in paragraph (1) (a), (b), (c) or (d) unless it is satisfied that the implementation of the arrangements it is seems to for the benefit of that person.
46 laws of Malaysia ACT 554 certain transaction Approval 48. If the management or administration of a trust, a transaction was in the opinion of the Court expedient, but could not be enforced because of the powers must not vested in the trustees by the terms of the trust or by law, the Court may, on the application of the trustee or beneficiary — (a) give the trustee, either generally or in any particular circumstances, the authority must, upon such terms and subject to such conditions, if any , as it deems fit; and (b) order the how to and property from whom any money allowed to spend, and the cost of any transaction, shall be paid or incurred.
General powers of the Court 49. (1) a trustee may apply to the Court for directions in respect of the manner in which he can or should act in connection with any matter relating to the trust and the Court may make such order, if any, as he may deem fit.
(2) the Court may also, if it deems fit — (a) make an order in respect of — (i) the implementation or administration of any trust;
(ii) a trustee of any trust, including an order relating to the exercise of any power, discretion or duty of trustee, appointment or dismissal of the trustee, the trustee's remuneration, akhlak account, the behavior of the trustee and any payment to the Court;
(iii) any beneficiary or any person that has nothing to do with the trust; or (iv) any property of the trust, including an order as to the vesting date, preservation, use, delivery or return of the procurement;
Labuan Offshore 47Amanah (b) make a declaration as to the validity or enforceability of the trust or something;
(c) remove or vary any order or declaration made under this Act, or to make any order or declaration of new or more.
(3) an application to the Court to obtain an order or declaration under subsection (2) may be made by the trustees or any beneficiary.
(4) all proceedings other than criminal proceedings relating to any offshore trust instituted in any court shall, unless the court orders otherwise, be heard in camera and no details of the proceedings for publication by any person without the leave of the Court.
(5) if the Court makes an order for the appointment of a trustee, it may impose such conditions as it thinks fit, including conditions of trust property vesting provisions.
(6) subject to any order of the Court, a trustee appointed by the Court under this section shall have the power, discretion and obligations same as if he were appointed as Trustees since the original.
Payment of the cost of 50. Costs and expenses of and incidental to an application to the Court under this Act shall be paid out of the trust property or incurred and paid in accordance with any other means or by any other person as may be ordered by the Court.
Protection for those who deal with the Trustees 51. (1) a bona fide purchaser without notice the real value of any breach of trust — (a) a person can deal with the trustee in relation to a trust estate as if the trustee is owner of the trust property is beneficially; and 48 laws of Malaysia ACT 554 (b) is not affected by the trust property is held for him.
(2) No person shall pay or advance money to the trustee reserves the right to ensure that the money required for the purposes of the trust, or that no more than what is needed is diperdapatkan, or otherwise as to the suitability of any transaction or use of the money.
Time limit action 52. (1) no period of time limits or restrictions under any law can apply to an action taken against a trustee —

(a) in respect of any fraud or criminal breach of trust which the trustees or, in the case of a trust company acting as trustee, any officers or employees to become a party to it or know about it; or (b) to recover from the trustee, or in the case of a trust company acting as trustee, any officers or employees of the trust property, or the proceeds thereof in its possession or control or received by him before that and taken to its intended use.
(2) subject to subsection (1), no action may be taken against a trustee by a beneficiary for any breach of trust after the expiration of six years — (a) starting from the date of delivery of account on trust to the beneficiary; or (b) from the date of the beneficiary first know about the occurrence of the breach of trust that, whichever date is earlier.
49Amanah Offshore Labuan (3) if the beneficiary is a minor or a person who is not disabled on the side of the law, the period referred to in subsection (2) shall not begin to run until the day the beneficiary ceases to be a minor or inability in legally halted.
(4) the period referred to in this section shall cease if a claim or an action filed in the competent court and served upon the trustee before the end of that period.
Money or other property from illegal activities Law 53. (1) a trust company acting as the trustee of an offshore trust cannot accept — (a) any money or other property arising from a transaction, operation or other activity is a criminal offence under the laws of Malaysia or, if carried out in Malaysia, would be such offences; or (b) any money or other property which the receipt, ownership or control is or will become an offence as referred to in paragraph (a).
(2) if any person being a Director, officer or agent of a trust company for the time being acting as trustee of a trust — (a) has reason to believe that the trust has property or income that accrued to it or obtained by it and arising from a transaction, operation or other activity is a criminal offence under the laws of Malaysia or If carried out in Malaysia, would be such offences; or (b) has received or has in its possession or control of money or other property which the receipt, ownership or control is or will become an offence as referred to in paragraph (a), 50 laws of Malaysia ACT 554 shall be the duty of such person to bring the matter immediately to the knowledge of the Board.
(3) any person who without reasonable excuse fails to comply with the requirements of subsection (1) or (2) commits an offence.
Penalty: Imprisonment for five years or thirty thousand ringgit or both.
(4) any person convicted of an offence for violating subsection (2) shall be disqualified for eternity to be a Director or officer of a trust company.
(5) all the money or property described in subsection (1) or (2) shall be forfeited to the Government and become his property as a whole.
Offences and penalties General 54. (1) any person who — (a) do anything that is prohibited by or under this Act;
(b) not to do anything which he is required to do so by or under this Act; or (c) otherwise contravenes or fails to comply with any provisions of this Act, commits an offence.
(2) any person guilty of an offence against this Act shall, on conviction, be liable to a penalty not exceeding the penalty referred to expressly as a penalty for that offence, or if the penalty is not referred to as such, can be liable to a fine not exceeding ten thousand ringgit.
(3) a financial Penalty, or otherwise specified in or at the foot of any section or part of a section in this Act shall indicate that the offence is punishable, on conviction, to a penalty of not more than what is specified and if the stated penalty applicable to a part that section only, it shall apply to that part only.
Labuan Offshore 51Amanah the power to claim 55. (1) no proceedings for any offence against this Act may be instituted by the Board except with the written consent of the public prosecutor.
(2) proceedings for any offence against this Act, other than an offence punishable with imprisonment for a term exceeding three years may be prosecuted in the magistrate's Court and an offence punishable with imprisonment for a term exceeding three years shall be prosecuted in the Court of Session or High Court.
Compounding of offences 56. (1) the Board may, with the consent of the public prosecutor, compound any offence committed by any person against this Act, by making an offer in writing to that person to compound the offence when paid to the Board within the time stated in the offer of a sum specified in the offer, which shall not exceed fifty per cent of the amount of the maximum fine that can be imposed on such person if he is convicted of the offence.
(2) an offer under subsection (1) may be made at any time after the offence, but before any prosecution for him started, and if the amount specified in the offer is not paid within the time stated in the offer, or within any extended period that may be granted by the Board, a prosecution for the offence may be commenced at any time after that to the person to whom the offer is made.
(3) If an offence has been J compounded under subsection (1), no prosecution shall be instituted thereafter in respect of any offence against the person to whom the offer is made.
52 laws of Malaysia ACT 57 regulations 554. (1) the Minister may from time to time make regulations necessary or expedient to give effect to the provisions of this Act, to carry out or to achieve the goals and purposes of this Act, or for the implementation of more, better or easier provisions of this Act.
(2) without prejudice to the generality of subsection (1), regulations may be made for fixing any forms, notices, fees, charges and anything required by this Act or as may be so specified is found necessary by the Minister.
Exemption from 58. (1) the Minister may, on his own or his will in accordance with an application in writing submitted to the Board by the maker of the trust or trustee of an offshore trust or an offshore trust registered or any person, excluding offshore trusts or offshore trust registered or any person from all or any provisions of this Act and any regulations made thereunder and may impose such terms and conditions as he thinks fit.
(2) an exemption granted under subsection (1) may be revoked or varied by the Minister at any time.
Prohibition of registration or conduct of business 59. (1) the Minister may, without stating the reason therefor, issue a command — (a) prohibit the registration or establishment or recognition of any trust or the enforcement of any trust under this Act; or (b) direct any offshore trust so stop running its business or any part of its business either immediately or within the time specified in the instructions.
(2) an order made under this section may be revoked or varied by the Minister.
Labuan Offshore 53Amanah procedure where there are no prescribed procedures 60. In the event of any action or measures are required or permitted to be done or taken under this Act and no prescribed form or no procedure is prescribed for the purpose, whether in this Act or any regulations made thereunder, the application may be made to the Board to obtain instructions about how to act or the move may be made or taken, and any action or steps made or taken by his direction shall be the implementation of legal acts or the move.
Exception in respect of the trust that existed before this Act comes into force 61. (1) there is nothing in this Act shall affect the validity or validity of any trust in Labuan as a consequence of a document or the disposal effected or effect, or any action taken or made in connection with any such trust before this Act comes into force.
(2) If, before the commencement of this Act, a trust was formed or established in Labuan, trust maker, if he is alive or exists, or in any other case, the beneficiary and the trustee, including any protector, may, within the period of twelve months from the date this Act comes into force, alter or amend the trust so that it meets the provisions of this Act and upon amendment or such changes made the trust shall be deemed to have been created by or as provided by the Act this.
Disapplication of certain laws

62. The provisions of the Trustee Act 1949 [Act 208], the Trustee Act (incorporation) 1952 [Act 258] and Government Proceedings Act, section 9 1956 [Act 359] shall not apply to offshore trust created with a valid or enforceable or registered under this Act.
54 laws of Malaysia ACT 554 laws of MALAYSIA Act 554 LABUAN OFFSHORE TRUST ACT 1996 LIST AMENDMENT law short title force amend from – no – Labuan Offshore 55Amanah laws of MALAYSIA Act 554 LABUAN OFFSHORE TRUST ACT 1996 LIST SECTION AMENDED Section Power amend with effect from – no – PRINTED by PERCETAKAN NASIONAL MALAYSIA BERHAD, KUALA LUMPUR on BEHALF and by ORDER of the GOVERNMENT of MALAYSIA JW514135