Singapore legislation

Section 271

of Securities and Futures Act 2001

Section 271

Liability of trustees for debenture holders

(1)

Subject to this section, any provision contained in a trust deed relating to or securing an issue of debentures, or in any contract with the holders of debentures secured by a trust deed, is void insofar as it would have the effect of exempting a trustee thereof from or indemnifying the trustee against liability for breach of trust where the trustee fails to show the degree of care and diligence required as trustee.

(2)

Subsection (1) does not invalidate —

(a)

any release otherwise validly given in respect of anything done or omitted to be done by a trustee before the giving of the release; or

(b)

any provision enabling such a release to be given —

(i)

on the agreement thereto of a majority of not less than three fourths in nominal value of the debenture holders present and voting in person or, where proxies are permitted, by proxy at a meeting summoned for the purpose; and

(ii)

either with respect to specific acts or omissions or on the dissolution of the trustee or on the trustee’s ceasing to act.

(3)

Subsection (1) does not operate —

(a)

to invalidate any provision in force on 29 December 1967 so long as any trustee then entitled to the benefit of that provision remains a trustee of the deed in question; or

(b)

to deprive any trustee of any exemption or right to be indemnified in respect of anything done or omitted to be done by the trustee while any such provision was in force.

Read in full context — Securities and Futures Act 2001 →