Section 178. Retirement of trustee

(1) Notwithstanding anything contained in any Act or in the relevant debentures or trust deed, a trustee for the debenture holders shall not cease to be the trustee until a corporation qualified under section 176 for the appointment as a trustee for the debenture holders has been appointed and has taken office.

(2) Where—

(a) a provision has been made in the debentures or in the relevant trust deed for the appointment of a successor to a trustee for the debenture holders upon retirement, the successor may be appointed in accordance with section 176; or

(b) 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 to be appointed under section 176.

(3) Notwithstanding anything in this Act or in any debentures or trust deed, a borrowing corporation may, with the consent of an existing trustee for the debenture holders, appoint any corporation which is qualified for appointment under section 176 and which is deemed by virtue of section 7 to be related to the existing trustee as successor to the existing trustee.

(4) Where the trustee for the debenture holders has ceased to exist or ceased to be qualified under section 176 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 debenture holders or any debenture holder or the Minister, appoint any corporation qualified under section 176 to be the trustee in place of the trustee which has ceased to exist or to be qualified or which fails or refuses to act as trustee or is disqualified.

(5) Where a successor is appointed to be a trustee in place of any trustee, the successor shall lodge with the Registrar a notice within thirty days from the appointment in the form and manner as determined by the Registrar.

(6) The successor who contravenes subsection (5) commits an offence and shall, on conviction, be liable to a fine not exceeding twenty thousand ringgit and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.