s 27B Exception for expenditure on defending proceedings, etc.
27B.—(1) Despite sections 162 and 163 of the Companies Act 1967, and if it is done on the terms provided in subsection (2), a trustee-manager of a registered business trust may —(a) provide a director of the trustee-manager with funds by way of any loan to meet expenditure incurred or to be incurred by the director —(i) in defending any criminal or civil proceedings in connection with any alleged negligence, default, breach of duty or breach of trust by him or her in relation to the registered business trust; or (ii) in connection with an application for relief under section 105; or (b) enable any such director to avoid incurring such expenditure. (2) The terms mentioned in subsection (1) are —(a) that the loan is to be repaid, or (as the case may be) any liability of the registered business trust incurred under any transaction connected with the thing done is to be discharged, in the event of —(i) the director being convicted in the proceedings; (ii) judgment being given against him or her in the proceedings; or (iii) the court refusing to grant him or her relief on the application; and (b) that the loan is to be repaid or discharged not later than 14 days after —(i) the date when the conviction becomes final; (ii) the date when the judgment becomes final; or (iii) the date when the refusal of relief becomes final. (3) For the purposes of this section —(a) a conviction, judgment or refusal of relief becomes final —(i) if it is not appealed against — at the end of the period for bringing an appeal; or (ii) if it is appealed against — when the appeal (or any further appeal) is disposed of; (b) an appeal or further appeal is disposed of —(i) if it is determined and there is no right of further appeal, or if there is a right of further appeal, the period for bringing any further appeal has ended; or (ii) if it is abandoned or otherwise ceases to have effect; and (c) a reference to the repayment of a loan includes the payment of any interest which is chargeable under the terms on which the loan was given.[Act 30 of 2022 wef 12/03/2024]