Clause 263

Notwithstanding anything in any Act or in the relevant debentures or trust deed but subject to section 262(6) and (7), a trustee for the holders of debentures shall not cease to be the trustee until a corporation qualified under section 262 for appointment as trustee for the holders of the debentures has been appointed to be the trustee for the holders of the debentures and has taken office as such.

Where provision has been made in the debentures or in the relevant trust deed for the appointment of a successor to a trustee for the holders of the debentures upon retirement or otherwise, the successor may, subject to section 262, be appointed in accordance with such provision.

Where no provision has been made in the debentures or in the relevant trust deed for the appointment of a successor to a retiring trustee, the borrowing corporation may appoint a successor which is qualified for appointment under section 262.

Notwithstanding anything in this Act or the Companies Act (Cap. 50) or in any debentures or trust deed, a borrowing corporation may, with the consent of an existing trustee for the holders of the debentures, appoint as successor to the existing trustee any corporation which is qualified for appointment pursuant to section 262 and which is related to the existing trustee.

Where the trustee for the holders of the debentures has ceased to exist or to be qualified under section 262 or fails or refuses to act or is disqualified under that section, the court may, on the application of the borrowing corporation or the trustee for the holders of the debentures or the holder of any of the debentures or the Authority, appoint any corporation qualified under section 262 to be the trustee for the holders of the debentures in place of the trustee which has ceased to exist or to be qualified, which has failed or refused to act as trustee, or which is disqualified.

Where a successor is appointed to be a trustee in place of any trustee, the successor shall within one month after the appointment lodge with the Authority notice in the prescribed form of the appointment.

Any person who fails to comply with subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and, in the case of a continuing offence, to a further fine not exceeding $500 for every day or part thereof during which the offence continues after conviction.