Regulatory Alerts2001-09-17
Guidelines on Allowing a Person to be Appointed or to Act as a Trustee under Subsection 69(2) of the Securities Commission Act 1993
The Securities Commission of Malaysia issued these guidelines to establish eligibility criteria for persons seeking approval to act as trustees for debenture holders under the Securities Commission Act 1993. The document mandates that trustees must maintain structural independence by ensuring at least one-third of their board comprises independent directors and that their non-financial resources are governed by arms-length agreements. Compliance requires the submission of a formal declaration, and the Commission retains the authority to withdraw approval if the trustee fails to meet these ongoing independence requirements.
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