Replacement of trustee 71 1 where no provision has

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Replacement of trustee 71. (1) Where no provision has been made in the debenture or trust deed for the appointment of a successor to a retiring trustee, the borrower shall, within one month after becoming aware of the intention of the trustee to retire, appoint as successor to the retiring trustee a trustee who is a person eligible to be appointed or to act as trustee under section 69. (2) A Court may, on the application of the borrower, a debenture holder or the Commission— (a) appoint, as trustee, a person who is eligible to be appointed or to act as trustee under section 69 if— (i) the trustee has not been validly appointed; or (ii) the trustee has ceased to exist; or (b) terminate the appointment of an existing trustee and appoint in his place, as trustee, a person who is eligible to be appointed or to act as trustee under section 69 if— (i) the existing trustee is not eligible to be appointed or to act as trustee under section 69; (ii) the existing trustee fails or refuses to act in accordance with the provisions or covenants of the trust deed or the provisions of this Act; (iii) a receiver is appointed over the whole or a substantial part of the assets or undertaking of the existing trustee and has not ceased to act under that appointment, or a petition is presented for the
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98 Laws of Malaysia A CT 498 winding up of the existing trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the existing trustee becomes or is declared to be insolvent); or (iv) the trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any securities law. (3) A borrower who contravenes subsection (1) shall be guilty of an offence. Duties of the borrower 72. (1) A borrower shall— (a) use its best endeavours to carry on and conduct its business in a proper and efficient manner; (b) provide a copy of the trust deed to— (i) a debenture holder; (ii) the trustee; or (iii) any other person as may be allowed by the Commission, if they request a copy and upon payment of such reasonable sum as may be imposed by the borrower; (c) make all of its financial and other records available for inspection by— (i) the trustee; (ii) an officer or employee of the trustee authorized by the trustee to carry out the inspection; or (iii) an approved company auditor appointed by the trustee to carry out the inspection, and give any person carrying out the inspection any information, explanation or other assistance that the person may require; and
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99 Securities Commission (d) comply with any direction issued by the Commission under subsection 89(1). (2) A borrower who contravenes— (a) paragraph (1) (a) shall not be guilty of an offence; (b) paragraph (1) (b) or (1) (c) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding fifty thousand ringgit; (c) paragraph (1) (d) shall be guilty of an offence.
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  • Spring '14
  • 1993, Futures exchange, Securities Commission

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