Labuan Companies Act 1990 s 62

Text recovered by OCR from a scanned copy — section numbers and wording may be wrong. Check the official PDF on lom.agc.gov.my before citing.

s 62

(1) A trust company when acting as trustee for the holders of debentures— (a) shall exercise reasonable diligence to ascertain whether or not the assets of the borrowing company and each of its guarantor companies, which are or lay be available by way of securities or otherwis re sufficient, or are likely to be or become sufficier to discharge the principal debt as and when it becomes due; (b) shall satisfy itself that each prospectus relating to the debenitures does not contain any matter which is inconsistent with the terms of the debentures or with the relevant trust deed; (c) shall exercise reasonable diligence to ascertain whether or not the borrowing company and each of its guarantor companies have committed any breach of the covenants, terms and provisions of the debentures or the trust deed; (d) except where it is satisfied that a breach of the covenants, terms and provisions of the debentures or the trust deed would not materially prejudice the security (if any) for the debentures or the interests of the holders of the debentures, shall take all steps and do all such things as it is empowered to do to cause the borrowing company and any of its guarantor companies to remedy any breach of those covenants, terms and provisions; (e) where the borrowing company or any of its guarantor companies fails, when so required by the trust company, to remedy any breach of the covenants, terms and provisions of the debentures or the trust deed, shall place the matter before a meeting of holders of the debentures, submit such proposal for the protection of their investment as the trust company considers necessary and appropriate and obtain the directions of the holders in relation thereto; and [Pt. IV, S. 62] (f) where the borrowing company submits to those holders a compromise or arrangement, shall give them a statement explaining the effect of the compromise or arrangement and, if it thinks fit, recommend to them an appropriate course of action to be taken by them in relation thereto. (2) Where, after due enquiry, a trust company acting as trustee for the holders of debentures at any time is of the opinion that the assets of a borrowing company and of any of its guarantor companies which are or should be available, whether by way of security or otherwise, are insufficient or likely to become insufficient to discharge the principal debt as and when it becomes due, the trust company may lodge an application in the prescribed form with the Registrar for a direction under this subsection and the Registrar may, on such application, after giving the borrowing company an opportunity for making representations in relation to the application, by direction in writing served on the company at its registered office in Labuan, impose such restrictions on the activities of the company, including restrictions on advertising for deposit or loans and on borrowing by the company, as the Registrar thinks necessary for the protection of the interests of the holders of the debentures, or the Registrar may, and if the borrowing company so requires shall, direct the trust company to lodge an application with the Court for an order under subsection (4) and the trust company shall apply accordingly. (3) Where— , (a) after due enquiry, a trust company acting as trustee for the holders of debentures at any time is of the opinion that the assets of the borrowing company and of any of its guarantor companies which are or should be available are insufficient, or likely to become insufficient, to discharge the principal debt as and when it becomes due; or (b) the company has contravened or failed to comply with a direction by the Registrar under subsection (2), the trust company may, and whiere the borrowing company has requested the trust company to do so, the trust company shall, apply to the Court for an order under subsection (4). [Pt. IV, S. 62] (4) Where an application is lodged by a trust company with the Court under subsection (2) or (3), the Court, after giving the borrowing company an opportunity of being heard, may, by order, do all or any of the following things, namely— (a) direct the trust company to convene a meeting of the holders of the debentures for the purpose of placing before them such information relating to their interests as the trust company considers necessary or appropriate and for the purpose of obtaining their directions in relation thereto, and give such directions in relation to the conduct of the meeting as the Court thinks fit; (b) stay all or any actions or proceedings before any Court by or against the borrowing company; (C) restrain the payment of any moneys by the borrowing company to the holders of debentures of the company ot to any class of such holders; (d) appoint a receiver of such of the property as constitutes the security (if any) for debentures or any part thereof; (e) give such further directions from time to time as may be necessary to protect the interests of the holders of debentures, the members of the borrowing company or any of its guarantor companies or the public, but in making any such order the Court shall have regard to the rights of all creditors of the borrowing company. (5) The Court may vary or rescind any order made under subsection (4) as it thinks fit. (6) A trust company in making any application to the Registrar or the Court shall have regard to the nature and kind of the security given when the debentures were offered to the public, and, if no security was given, shall have regard to the position of the holders of the debentures as unsecured creditors of the borrowing company. (7) A trust company may rely upon any certificate or report given or statement made by any advocate, auditor or officer of the borrowing company or guarantor company if it has reasonable grounds for believing that such advocate, auditor or officer was competențto give or make the certificate, report or statement. [Pt. IV, S. 63] directors of the borrowing company shall- (a) at the end of a period not exceeding three months ending on a day which the trust company is hereby required to notify to the borrowing company in writing; and (b) at the end of each succeeding period thereafter, being a period of three months or such shorter time as the trust company may, in any special circumstances, allow, prepare a report that relates to that period and complies with the requirements of subsection (2) and, within thirty days after the end of each such period, lodge a copy of the report relating to that period with the Registrar and with the trust company. Penalty: Ten thousand ringgit. Default penalty. (2) The report referred to in subsection (1) shall be signed by not less than two of the directors on behalf of all of them and shall set out in detail any matters adversely affecting the security or the interests of the holders of the debentures and, without affecting the generality of the foregoing, shall state- (a) whether or not the limitations on the amount that the company may borrow have been exceeded; (b) whether or not the borrowing company and each of ... its guarantor companies have observed and performed all the covenants and provisions binding upon them respectively by or pursuant to the debentures or any trust deed; (c) whether or not any event has happened which has caused or could cause the debentures or any provisions of the relevant trust deed to become enforceable and, if so, particulars of that event; (d) whether or not any circumstances affecting the borrowing company, its subsidiaries or its guarantor companies or any of them have occurred which materially affect any security or charge created by the debentures or any trust deed and, if so, particulars of those circumstances; [Pt. IV, S. 63] (e) whether or not there has been any substantial change in the nature of the business of the borrowing company or any of its subsidiaries or any ot its guarantor companies since the debentures were first issued to the public which has not previously been reported upon as required by this section and, if so, particulars of that change; and (f) where the borrowing company has deposited money with, or lent money to, or assumed any liability of, a company which pursuant to section 4 is deemed to be related to the borrowing company, particulars of- (i) the total amount so deposited or lent and the extent of any liabilities so assumed during the period covered by the report; (ii) the total amount owing to the borrowing company in respect of money so deposited or lent and the extent of any liabilities so assumed as at the end of the period covered by the report, distinguishing between deposits, loans and assumptions of liability which are secured and those which are unsecured, but not including any deposit with or loan to or any liability assumed on behalf of acompany if that company has guaranteed the repayment of the debentures of the borrowing company and has secured the guarantee by a charge over its assets in favour of the trust company acting as trustee for the holders of the debentures of the borrowing company. (3) Where a trust company acts as trustee for the holders of any debentures issued by a borrowing company, the borrowing company and each guarantor company which has guaranteed the repayment of the moneys raised by the issue of those debéntures shall, within twenty-one days after the creation of the charge, furnish the trust company on behalf of the holders of the debentures, whether or not any demand therefor by it has been made, with particulars in writing of any charge created by the company or the guarantor company, as the case may require, and when the amount to be advanced upon the security of the charge is indeterminate (within seven days after the advance) with particulars of the amount or amounts : [Pt. IV, S. 63] in fact advanced, but where any such advances are merged in a current account with bankers or trade creditors, it shall be sufficient for particulars of the net amount outstanding in respect of any such advances to be furnished every three months. (4) The directors of every borrowing company which has issued debentures to the public and of every guarantor company which has guaranteed the repayment of the moneys raised by the issue of the debentures to the public shall, at some date not later than nine months, or in the case of any particular company, not later than such other period as is for the time being fixed by the Registrar with the consent of the trust company acting on behalf of the debenture holders for that company, after the expiration of each financial year of the company, cause to be made out and lodged with the Registrar and with the trust company a profit and loss account together with a detailed statement of outstanding liability under such debentures for the period from the end of that financial year until the expiration of six months after the end of that financial year and a balance sheet as at the end of the period to which the profit and loss account relates. (5) Where any guarantor company, being a company which is incorporated in any state or territory nominated for the purposes of this section by the Minister, has lodged with the appropriate authority in any such nominated state or territory a profit and loss account and balance sheet for the relevant period, that shall be sufficient compliance with the requirements of subsection (4) if, with the consent of the trust company acting as trustee for the holders of the debentures of the borrowing company, there is lodged with the Registrar and the trust company certified copies of the profit and loss account and balance sheet so lodged. •(6) Where the directors of a borrowing company do not lodge with the trust company acting as trustee for the holders of the debentures of the company a report as required by subsection (1), or where the directors of a borrowing company or of its guarantor companies do not lodge with the Registrar and the trust company the profit and loss account, detailed statement and balance sheet as required by subsection (4) within the time prescribed, the trust company shall, as soon as possible, lodge notice of that fact with the Registrar. Obligation of guarantor company to furnish information. Loan and deposits tọ be immediately repayable on certain events. [Pt. IV, S. 64-65]

Malay text (authoritative)

(1) Sesuatu syarikat amanah apabila bertindak Kewajipansebagai pemegang amanah bagi pemegang-pemegang kewajipan debentur— amanah. (a) hendaklah menjalankan usaha yang munasabah untuk menentukan sama ada atau tidak aset-aset syarikat peminjam dan setiap syarikat penggerentinya, yang ada atau mungkin ada sama ada sebagai cagaran atau selainnya, adalah mencukupi, atau mungkin akan atau akan menjadi mencukupi, untuk menjelaskan hutang utama jika dan apabila ia kena dibayar; (b) hendaklah memuaskan hatinya bahawa setiap prospektus yang berhubungan dengan debentu itu tidak mengandungi apa-apa perkara yang tal konsisten dengan terma-terma debentur itu atau dengan suratikatan amanah yang relevan; (c) hendaklah menjalankan usaha yang munasabah untuk menentukan sama ada atau tidak syarikat peminjam dan setiap syarikat penggerentinya [Bah. IV, S. 62] telah melakukan apa-apa pelanggaran waadwaad, terma-terma dan peruntukan-peruntukan debentur atau suratikatan amanah; (d) kecuali jika ia berpuas hati bahawa pelanggaran waad-waad, terma-terma dan peruntukanperuntukan debentur atau suratikatan amanah itu tidak akan memudaratkan secara material cagaran (jika ada) bagi debentur-debentur atau kepentingan-kepentingan pemegang-pemegang debentur, hendaklah mengambil segala langkah dan melakukan semua perkara yang 1a diberikuasa untuk melakukan bagi menyebabkan syarikat peminjam itu dan mana-mana syarikat penggerentinya meremedikan apa-apa pelanggaran waad-waad, terma-terma dan peruntukan-peruntukan tersebut; (e) jika syarikat peminjam atau mana-mana syarikat penggerentinya gagal, apabila dikehendaki oleh syarikat amanah itu, meremedikan apa-apa pelanggaran waad-waad, terma-terma dan peruntukan-peruntukan debentur atau suratikatan amanah itu, hendaklah membentangkan perkara itu di mesyuarat pemegang-pemegang debentur, mengemukakan apa-apa cadangan bagi melindungi pelaburan mereka sebagaimana yang difikirkan perlu dan sesuai oleh syarikat amanah itu dan mendapatkan arahan pemegangpemegang berhubungan dengannya; dan (f) jika syarikat peminjam mengemukakan kepada pemegang-pemegang itu suatu kompromi atau perkiraan, hendaklah memberikan kepada pemegang-pemegang itu suatu pernyataan yang menerangkan kesan kompromi atau perkiraan itu dan, jika ditıkırkannya patut, mengesyorkan kepada mereka suatu penjalanan tindakan yang sesuai untuk diambil oleh mereka berhubungan dengannya. (2) Jika, selepas siasatan wajar, syarikat amanah yang bertindak sebagai pemegang amanah bagı pemegangpemegang debentur pada bila-bila masa berpendapat bahawa aset-aset syarikat peminjam dan aset-aset mana- : : [Bah. IV, S. 62] mana syarikat penggerentinya yang ada atau sepatutnya ada, sama ada sebagai cagaran atau selainnya, adalah tidak mencukupi atau mungkin tidak akan mencukupi untuk menjelaskan hutang utama jika dan apabila ia kena dibayar, pemegang amanah boleh menyerahkan suatu permohonan mengikut bentuk yang ditetapkan kepada Pendaftar untuk mendapatkan suatu arahan di bawah subseksyen ini dan Pendaftar boleh, atas permohonan itu, selepas memberi syarikat peminjam suatu peluang membuat representasi berhubungan dengan permohonan itu, melalui arahan bertulis yang disampaikan kepada syarikat itu di pejabat berdaftarnya di Labuan, mengenakan apa-apa sekatan ke atas aktiviti-aktiviti syarikat itu, termasuk sekatan-sekatan mengenai pengiklanan bagi mendapatkan deposit atau pinjaman dan mengenai peminjaman oleh syarikat itu, sebagaimana yang difikirkan perlu oleh Pendaftar bagi melindungi kepentingan pemegang-pemegang debentur, atau Pendaftar boleh, dan jika syarikat peminjam menghendaki demikian hendaklah, mengarahkan syarikat amanah supaya menyerahkan suatu permohonan kepada Mahkamah bagi mendapatkan suatu perintah di bawah subseksyen (4) dan syarikat amanah itu hendaklah memohon dengan sewajarnya. (3) Jika— (a) selepas siasatan wajar, syarikat amanah yang bertindak sebagai pemegang amanah bagi pemegang-pemegang debentur pada bila-bila masa berpendapat bahawa aset-aset syarikat peminjam dan aset-aset mana-mana syarikat penggerentinya yang ada atau sepatutnya ada adalah tidak mencukupi, atau mungkin tidak akan mencukupi, bagi menjelaskan hutang utama jika dan apabila ia kena dibayar; atau (b) syarikat itu telah melanggar atau tidak mematuhi sesuatu arahan yang dibuat oleh Pendaftar di bawah subseksyen (2), syarikat amanah itu boleh, dan jika syarikat peminjam telah meminta syarikat amanah berbuat demikian, syarikat amanah itu hendaklah, memohon kepada Mahkamah bagi mendapatkan suatu perintah di bawah subseksyen (4). [Bah. IV, S. 62] (4) Jika suatu permohonan diserahkan oleh syarikat amanah kepada Mahkamah di bawah subseksyen (2) atau (3), Mahkamah, selepas memberi syarikat peminjam suatu peluang untuk didengari, boleh, dengan perintah, melakukan kesemua atau mana-mana perkara yang berikut, iaitu— (a) mengarahkan syarikat amanah itu supaya memanggil suatu mesyuarat pemegangpemegang debentur bagi maksud membentangkan di hadapan mereka apa-apa maklumat yang berhubungan dengan kepentingan-kepentingan mereka sebagaimana yang difikirkan perlu atau sesuai oleh syarikat amanah itu dan bagi maksud mendapatkan arahan-arahan mereka berhubungan dengannya, dan memberi apa-apa arahan berhubungan dengan penjalanan mesyuarat itu sebagaimana yang difikirkan patut oleh Mahkamah; (b) menangguhkan kesemua atau apa-apa tindakan atau prosiding di hadapan mana-mana Mahkamah oleh atau terhadap syarikat peminjam; (c) menghalang pembayaran apa-apa wang oleh syarikat peminjam kepada pemegang-pemegang debentur syarikat itu atau kepada mana-mana kelas pemegang debentur itu; (d) melantik seorang penerima bagi mana-mana harta yang menjadi cagaran (jika ada) bagi debentur-debentur itu atau mana-mana bahagiannya; (e) memberi apa-apa arahan selanjutnya dari semasa ke semasa sebagaimana yang perlu untuk melindungi kepentingan pemegang-pemegang debentur, anggota-anggota syarikat peminjam atau mana-mana syarikat penggerentinya atau awam, tetapi pada membuat apa-apa perintah sedemikian Mahkamah hendaklah mengambil perhatian akan hak-hak kesemua pemiutang syarikat peminjam. : : : [Bah. IV, S. 62-63] (5) Mahkamah boleh mengubah atau membatalkan apa-apa perintah yang dibuat di bawah subseksyen (4) sebagaimana yang difikirkannya patut. (6) Sesuatu syarikat amanah, pada membuat apa-apa permohonan kepada Pendaftar atau Mahkamah, hendaklah mengambil perhatian akan bentuk dan jenis cagaran yang diberi semasa debentur-debentur itu ditawarkan kepada awam, dan, jika tiada cagaran diberikan, hendaklah mengambil perhatian akan kedudukan pemegangpemegang debentur sebagai pemiutang-pemiutang tak bercagar bagi syarikat peminjam itu. (7) Sesuatu syarikat amanah boleh bergantung kepada apa-apa perakuan atau laporan yang diberikan atau pernyataan yang dibuat oleh mana-mana penguambela, juruaudit atau pegawai syarikat peminjam atau syarikat penggerenti jika ia mempunyai alasan-alasan yang munasabah bagi mempercayai bahawa peguambela, juruaudit atau pegawai itu adalah kompeten untuk memberi atau membuat perakuan, laporan atau pernyataan itu.

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Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).

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