International Trusts Order, 2000

This Order may be cited as the International Trusts Order, 2000 and shall commence on a day to be appointed by the Authority, with the approval of His Majesty the

Sultan and Yang Di-Pertuan, by notice in the Gazette.

The long title of this Order is “An Order for the creation of international trusts, and matters connected therewith and incidental thereto”.

Interpretation.

directly; or

money, goods, chases in action, land and every descriptions of property, whether movable or immovable; and

obligations, easements and every description of estate, interest and profit, present or future, vested or contingent, arising out of, or incident to, any property as defined in paragraph (a);

“protector” means any person appointed as such pursuant to the terms of the trust instrument and includes any duly appointed successor to an initial protector;

“rights” include estates and interests;

“sale” includes an exchange;

“securities” includes stock, funds debt obligations, options, warrants, rights to acquire debt obligations and shares and so far as relates to payments into court has the same meaning as in the written laws relating to funds in the Court; and “securities payable to the bearer” include securities transferable by delivery or by delivery and endorsement;

4

BLUV as at 16th December 2010

“settlor” includes the testator where trusts are declared by will or codicil;

“shares” means share in the capital of a company and (where the context so admits)

include stock, units, options, warrants depository receipts and rights to acquire shares and in Part XIIA, includes dedicated shares;

“special trust” or “special power” means a trust or power that under section 76 is subject to Part IX of this Order;

“stock” includes fully paid up shares and, so far as relates to vesting orders made by the

Court under this Order, includes any fund, annuity or security transferable in books kept by any company or society or by instruments of transfer either alone or accompanied by other formalities and any share or interest therein;

“transfer” in relation to stock or securities includes the execution of every deed or other instrument of transfer or power of attorney and the performance or intended performance of every act or thing on the part of the transferor to effect and complete the title in the transferee;

“trust” means an international trust except where the context otherwise requires;

“trust corporation” means a person licensed to conduct international trust business under the Registered Agents and Trustees Licensing Order, 2000 and, where the context so admits, includes a wholly-owned subsidiary of a trust corporation authorised under section 3(3) of that Order;

“trust instrument” means the written testamentary or other instrument if any by which, or on the terms of which, the trust is created (including any subsequent instruments affecting the terms or administration of the trust) or where the trust was not created by, or on the terms of, any written instrument refers to any trust instrument evidencing an oral declaration creating the trust.

5

BLUV as at 16th December 2010

Application and restrictions.

This Order applies to a trust only if it is an international trust and all the provisions of this Order shall be read and understood and take effect accordingly.

For the purposes of this Order, a trust is an international trust except where the context otherwise requires if it is created in writing whether by deed, unilateral declaration will or other testamentary document or otherwise and at least one of the trustees is a trust corporation or a wholly-owned subsidiary of a trust corporation authorised under section 3(3)

of the Registered Agents and Trustees Licensing Order, 2000; and

For the purposes of subsection (2)(b)(ii) –

No capital or income subject to an international trust shall be paid or applied

(otherwise than in the execution of a charitable purpose) in any way which might confer any direct or indirect benefit on any person who is residing in Brunei Darussalam at the time of the payment or application.

Subsection (4) does not prevent –

Except with the prior consent of the Authority upon such terms as he may consider appropriate no money or other property subject to an international trust shall be invested in or upon the security of any immovables in Brunei Darussalam.

Retention of rights by settlor.

The express or implied retention, possession acquisition or exercise by a settlor of any one or more of the powers, functions or interests referred to in subsection (2) shall not invalidate a trust or the trust instrument or cause a trust created inter vivos to be a testamentary trust or disposition or the trust instrument creating it to be a testamentary document, provided that in the absence of express provision in that behalf nothing in this section shall operate to imply any such powers, functions and interests to be included in the terms of the trust or the trust instrument.

The powers, functions and interests referred to in subsection (1) are –

Subsections (1) and (2) do not prejudice any question as to the effect of a settlor retaining, possessing or acquiring any other powers, functions or interests.

Subject to its other terms, a trust instrument may contain a power for the settlor to amend, alter or vary a trust, but such powers shall not, in the absence of express provision to the contrary include a power to add as beneficiaries any persons whatever (including the settlor and any private or charitable trusts or foundations) or to remove any beneficiaries.

Subject as provided in subsection 3(6) –

The powers conferred by this section apply to a trust if and so far only as a contrary intention is not expressed in the trust instrument and shall have effect subject to the terms of that instrument.

The powers conferred by this section shall be subject to any consent or direction required by the trust instrument with respect to the investment of trust property.

Exercise of powers of investment.

Without limiting the powers of investment conferred under section 5 and subject to the terms of the trust instrument trustees may make, retain and change investments having regard to the purposes, distribution requirements and other circumstances of the trust

(including, without limitation, the circumstance that a trust is an international trust any may ipso facto, but subject to its terms, be administered and discharged according to differing investment policies than a trust which is not an international trust) and of the beneficiaries.

Notwithstanding subsection (1), trustees who are named or appointed as trustees in reliance upon their representation that they have special skills or expertise, have a duty to the beneficiaries to use such special skills or expertise.

This section shall apply if and so far only as a contrary intention is not expressed in the trust instrument and shall have effect subject to the terms of that instrument.

Investment advice.

Before exercising any powers of investment, trustees may but shall not be bound to obtain and consider proper advice on the question of suitability to the trust of any proposed investment.

9

BLUV as at 16th December 2010

Trustees retaining any investment may but shall not be bound to obtain and consider, at such intervals as they consider appropriate having regard to the nature of the investment and other circumstances, proper advice on the suitability of continuing to retain the investment or disposing of it.

For the purposes of this section, proper advice is the written advice of any investment adviser named in the trust instrument or duly appointed pursuant to its terms, or of any person including a settlor, enforcer or protector who is reasonably believed by the trustees to be qualified to give the advice as a result of that person’s ability in and practical experience of matters relevant to investment decisions, and notwithstanding that it may be given in the course of that person’s employment as an officer or servant of a company or other institution.

Notwithstanding the provisions of section 6, trustees shall not be liable for any loss which may result from their having made, changed, retained or disposed of any investment pursuant to proper advice.

The powers and immunities conferred by this section are in addition to those conferred by the trust instrument and by law including this Order.

Power to retain investments which have ceased to be authorised.

Where any securities of a company are subject to a trust, the trustees may concur in any scheme or arrangement –

Trustees may, pending the negotiation and preparation of any mortgage or charge or during any other time while an investment is being sought for, pay any trust money into a bank to a deposit or other account.

Securities payable to the bearer which are trust property may, until sold, be deposited with a bank for safe custody and collection of interest, and any expenses of any such deposit and of collection shall be paid out of capital or income of the trust property, or partly in one way and partly in the other, as the trustees in their discretion think fit.

11

BLUV as at 16th December 2010

Application of Part II.

Trustees shall have the full individual beneficial owners absolutely entitled –

The power of mortgaging conferred by subsection (1) shall be exercisable for the purpose of borrowing money in order to invest it unless this is prohibited by the trust instrument.

Powers of trustees to sell by auction or private contract.

Where any property vested in trustees by way of security becomes, by virtue of any law relating to the limitation of actions or of an order for foreclosure or otherwise, discharged from the right of redemption, it shall be held by them on trust for sale with full power of postonement.

The net proceeds of sale after payment of costs and expenses shall be applied in like manner as the mortgage debt, if received, would have been applicable and the income of the property until sale shall be applied in like manner as the interest, if received, would have been applicable; but this subsection operates without prejudice to the rule of law relating to the apportionment of such proceeds between income and capital beneficiaries sometimes referred to as the rule in Re Atkinson.

This section shall not affect the right of any person to require that instead of a sale the property shall be conveyed to him or in accordance with his directions.

Power of trustees to give receipts.

The receipt in writing of trustees for any money, securities or other personal property or effects payable, transferable or deliverable to them under any trust or power shall be a sufficient discharge to the person paying, transferring or delivering the same and shall effectually exonerate that person from seeing to its application or being answerable for any loss or misapplication of it.

13

BLUV as at 16th December 2010

This section shall apply notwithstanding anything to the contrary in the trust instrument.

Power to compound liabilities.

accept any property before the time at which it is made transferable or payable;

or

sever and apportion any blended trust funds or property; or

pay or allow any debt or claim on any evidence that they think sufficient; or

accept any composition or any security for any debt or for any property claimed;

or

allow any time for payment of any debt; or

compromise, compound, abandon, submit to arbitration or otherwise settle any debt, account, claim or thing whatever relating to the trust, and for any of those purposes may enter into, give, execute and do such agreements, intruments of composition or arrangement, releases and other things as to them seem expedient, without being responsible for any loss occasioned by any act or thing so done by them in good faith.

Power to raise money by sale, mortgage or otherwise.

Where trustees are authorised by the trust instrument or by law to pay or apply capital money subject to the trust for any purpose or in any manner, they shall have power to raise the money required by sale, conversion, calling in, or mortgage or charge of all or any part of the trust property for the time being in possession.

The power to mortgage or charge conferred by subsection (1) shall be exercisable for the purpose of borrowing money in order to invest it unless this is expressly, generally, implicitly or specifically negated by the trust instrument.

Protection of purchasers and mortgagees dealing with trustees.

Trustees may insure against any risk in respect of any trust property as and for any interest if they were the absolute beneficial owners thereof and may pay the premium for such insurance at the discretion of the trustees out of income or out of capital.

Without prejudice to the requirements relating to insurance applicable in respect of trust corporations to person licensed under the Registered Agents and Trustees Licensing

Order, 2000, trustees may insure against personal liabilities (otherwise than for breach of trust)

which they may incur in the execution of their trusts and may effect fidelity insurance for employees whom they employ in their capacity as trustees. The premiums for any such insurances may be paid out of the capital or income of the trust property at the discretion of the trustees.

Application of insurance money where policy kept up under trust, power or obligation.

Trustees may deposit any document held by them relating to the trust or to trust property, and any other chattel which is trust property, with any banker or banking company or any other company whose business includes the undertaking of the safe custody of documents or property.

Any sum payable in respect of such a deposit shall be paid out of the trust property or of other property held on the same trusts.

Reversionary interests, valuation and audit.

agree or ascertain the value of it or any part of it in such manner as they may think fit;

accept in or toward satisfaction of it, at the market or current value or upon any valuation or estimate of value which they may think fit, any authorised investments;

allow any deductions for taxes, duties, costs, charges and expenses which they think proper or reasonable;

execute any release in respect of the property so as effectually to discharge all accountable parties from all liability in respect of any matters coming within the scope of such release, without being responsible in any such case for any loss occasioned by any act or thing so done by them in good faith.

Obtaining valuation.

Trustees may, instead of acting personally, employ and pay an agent, whether an advocate, foreign lawyer, banker, stockbroker, investment adviser, investment manager or other person, to give advice, transact any business or do any act required to be transacted or done in the execution of the trust including the receipt and payment of money.

Trustees may appoint and pay any person to act as their agent or attorney for the purpose of selling, converting, collecting, getting in and executing and perfecting assurances of, or managing or cultivating or otherwise administering, any property subject to the trust in any place inside or outside Brunei Darussalam, or executing or exercising any discretion or trust or power vested in them in relation to any such property, with such ancillary powers and with and subject to such provisions and restrictions as they may think fit, including a power to appoint substitutes.

Trustees shall be allowed and paid all charges and expenses incurred under this section out of the capital or income of the trust property, or partly in one way and partly in the other, as the trustees in their absolute discretion think fit.

Trustees who make reasonable efforts to satisfy themselves that an agent has appropriate knowledge, experience and integrity shall not be chargeable with breach of trust or be responsible for any loss arising out of their having appointed the agent or joined or concurred in that appointment.

17

BLUV as at 16th December 2010

Trustees who have made reasonable efforts to keep themselves informed concerning the performance of an agent shall not be liable or responsible for any default or wrongful act of the agent which occurs at a time when the agent appeared to the trustees to be performing honestly and competently.

Subsections (4) and (5) shall apply to agents appointed under the powers conferred by this Order or under any power in the trust instrument.

Power to delegate trusts.

A trustee may, where it is necessary for the proper administration of the trust notwithstanding any rule of law or equity to the contrary, by power of attorney or any other written instrument delegate to any person outside Brunei Darussalam or to any person in Brunei

Darussalam while any trustee other than a trust corporation is absent from Brunei Darussalam the execution or exercise of all or any trusts, powers and discretions vested in him as such trustee either alone or jointly with any other person.

Section 3 of the Powers of Attorney Act (Chapter 13) shall not apply to a power of attorney executed pursuant to subsection (1).

The power of attorney may be in the form of the power of attorney in the First

Schedule with such alterations (if any) as may be appropriate or in any other appropriate form.

A delegate appointed under this section shall be considered an agent of the trustee for the purposes of sections 29(5) and (6).

In favour of any person dealing with the delegate, any act done or instrument executed by the delegate shall, notwithstanding that the power has been revoked by the act of the trustee or by his death or otherwise, be as valid and effectual as if the trustee were alive and of full capacity and had himself done such act or executed such instrument, unless such person had actual notice of the revocation of the power before such act was done or instrument executed and provided that such person, having knowledge that he is dealing with a delegate has obtained from the delegate a written declaration that the delegate has received no notice of revocation howsoever arising of his power.

18

BLUV as at 16th December 2010

For the purpose of exercising the powers delegated to him, the delegate may exercise any of the powers of executing the trusts conferred on the trustee as trustee by law or by the trust instrument, including power for the purpose of the transfer of securities himself to delegate to an attorney a power of transfer but not including the power of delegation conferred by this section.

The fact that it appears from any power given under this section or otherwise that in dealing with any securities the delegate of the power is acting in the execution of a trust shall not be deemed for any purpose to affect any person in whose books the securities are inscribed or registered with any notice of the trust.

Devolution of powers of trustees.

Where there are more than two trustees and where a power or trust is given to or imposed upon two or more trustees jointly, a decision of the majority of trustees shall be binding on all, and such a power or trust may be exercised or performed by the survivors or survivor of them (being a trust corporation) for the time being. Subject to the terms of the trust instrument where there is an equality of trustees only, then the trust corporation which is one of the trustees shall have a casting vote.

Until the appointment of new trustees, the personal representatives or representative for the time being of a sole trustee, or, where there were two or more trustees, of the last surviving or continuing trustee, shall be capable of exercising or performing any power or trust which was given to, or capable of being exercised by, the sole or last surviving or continuing trustee, or the other trustees or trustee for the time being of the trust.

In this section, “personal representative” shall not include an executor who has renounced or has not proved.

Application of Part III.

to place any distringas or stop notice or apply for any stop or other like order upon any securities or other property out of or on which such share or interest or other thing in action is derived, payable or charged; or

to take any proceedings on account of any act, default or neglect on the part of the persons in whom such securities or other property or any of them or any part of any of them are for the time being, or had at any time been, vested, unless or until required in writing so to do by some person, or the guardian of some person, beneficially interested under the trust and unless also due provision is made to their satisfaction for payment of the costs of any proceedings required to be taken.

Obligation of trustees not relieved.

nothing in this section shall affect the right of any person entitled to the money against the person to whom the payment is made;

the person so entitled shall have the same remedy against the person to whom the payment is made as he would have had against the trustee.

Indemnity of trustees.

A trustee shall be chargeable only for money and securities actually received by him notwithstanding his signing any receipt for the sake of conformity, and shall be answerable and accountable only for his own acts, receipts, neglects or defaults and not for those of any other trustee nor for any banker, broker or other person with whom any trust money or securities may be deposited nor for any other loss, unless such loss happens through his own individual act or omission.

A trustee may reimburse himself or pay or discharge out of the trust property all his proper charges and expenses incurred in or about the execution of the trusts or powers.

Subsection (2) applies to a trustee who has acted in good faith after making reasonable inquiries as to the validity and propriety of the creation of the trust notwithstanding that it may subsequently have been set aside or found to have been invalid or ineffective.

If the trust instrument so provides, a trustee may upon resignation, retirement, removal or otherwise ceasing to be trustee of a trust require from any continuing or new trustee

(in the event of the trustee’s resignation, retirement or removal), from the settlor (in the event of the trust’s revocation) or from any beneficiary (in the event of a final distribution to such beneficiary) a release and indemnity holding harmless the outgoing trustee, and the servants and agents of the outgoing trustee and (if it is a body corporate) its directors and officers from

21

BLUV as at 16th December 2010

and against any and all claims, demands, actions, proceedings, damages, costs, charges and expenses whatsoever for, or arising out of, or in relation to, any act or omission of the outgoing trustee or of any such directors, officers, servants or agents in respect of the administration of the trust by the outgoing trustee.

The release and indemnity under subsection (4) do not extend to any liabilities for breach of trust or in respect of which the outgoing trustee would otherwise not have been entitled to an indemnity out of the trust property had the outgoing trustee remained a trustee;

and the indemnity given by any continuing or new trustees shall be limited to the trust property in their possession or under their control from time to time.

A trustee who has acted in good faith after making reasonable inquiries as to the validity and propriety of the creation of a trust shall have a first and paramount charge over the trust property of an amount equal to the entire costs including its own fees and expenses and those of any agent, attorney or any other person properly incurred by the trustee or any such person in defending the trust with the sanction of the Court in any proceedings in which its validity is in issue, and not merely such costs as might be allowed by the Court in the absence of this subsection.

A trustee which is a trust corporation or company authorised to undertake trust business shall be entitled to remuneration in accordance with its published terms for trust business in force from time to time and, in the absence of published terms, in accordance with such terms as may from time to time be agreed between the trustee and the Settlor or, if the

Settlor is unfit, unable or unwilling to act, the person or persons by whom the power of appointing new trustees is exercisable.

A trustee, whether acting as a person engaged in a profession or business or in a personal capacity, shall be entitled to all normal professional or other fees for business done, services rendered or time spent by such trustee personally or by such trustee’s firm or company in the administration of these trusts, including acts which a trustee not engaged in any profession or business could have done personally.

22

BLUV as at 16th December 2010

A trustee shall be entitled to retain any commission which may be received personally or by such trustee’s firm in respect of any transaction carried out on behalf of this

Trust for which such trustee or trustee’s firm is, in the normal course of business, allowed commission, notwithstanding that the receipt of such commission was procured by an exercise by such trustee or the trustees of powers over the Trust Fund.

Subject to the terms of the trust, and subject to any prior interest or charges affecting the trust property, where a beneficiary is a minor and whether or not his interest is a vested interest or an interest which will become vested on attaining the age of majority or a later age or upon the happening of any event, the trustee may –

The receipt given by a parent or the lawful guardian of a beneficiary who is a minor shall be sufficient discharge to the trustee for a payment made under subsection (1).

Subject to the terms of the trust and to any prior interest or charges affecting the trust property, the trustee at its discretion may advance or apply for the benefit of a beneficiary any part or (subject to subsections (5) and (6)) all of the trust property prior to the date of the happening of the event upon the happening of which the beneficiary becomes entitled absolutely thereto.

23

BLUV as at 16th December 2010

Subject to the terms of the trust, a trustee may appropriate at its discretion trust property in or towards the satisfaction of the interest of a beneficiary in such manner and in accordance with such valuation as the trustee may think fit.

Subject to the terms of the trust, any part of the trust property advanced, applied or appropriated under this section shall be brought into account in determining from time to time the share of the beneficiary in the trust property.

No part of the trust property advanced, applied or appropriated as provided in this section shall exceed the presumptive, contingent or vested share of the beneficiary in the trust property.

No trustee shall be compelled, in any manner, to exercise any discretionary power of maintenance or advancement.

Protective trusts.

Where any income including an annuity or other periodical income payment is directed to be held on protective trusts for the benefit of any person (in this section called “the principal beneficiary”) for the period of his life or for any less period, then during that period

(in this section called the “trust period”) the said income shall, without prejudice to any prior interest, be held on the following trusts, namely –

This section has effect subject to any variation of the implied trusts aforesaid contained in the trust instrument.

Nothing in this section operates to validate any trust which would if contained in the trust instrument be liable to be set aside.

Restrictions on alienation.

Notwithstanding any rule of law or equity to the contrary, it shall be lawful for a trust instrument to provide that any estate or interest in any property given or to be given to any individual as a beneficiary shall not during the life of that beneficiary, or such lesser period as may be specified in the trust instrument, be alienated or pass by bankruptcy, insolvency or liquidation or be liable to be seized, sold, attached, or taken in execution by process of law and where so provided such provisions shall take effect accordingly.

Where property is given subject to any of the restrictions contained in subsection (1), the right to derive income from such property by a beneficiary and any income derived therefrom shall not pass by bankruptcy, insolvency or liquidation or be liable to be seized, attached or taken in execution by process of law.

25

BLUV as at 16th December 2010

Where property is given subject to a restriction against alienation then the right to derive income from that property shall not be alienable for as long as that restriction remains in force.

A restriction imposed pursuant to this section may at any time be removed in accordance with any provisions for such removal in the trust instrument and in the manner specified therein.

No settlor may benefit from the provisions of this section.

Where a trustee either original or substituted and whether appointed by the

Court or otherwise is dead or desires to be discharged from all or any of the trusts or powers reposed in or conferred on him or refuses or is unfit to act therein or is incapable of acting therein or is a minor, then –

Where a trustee has been removed under a power contained in the trust instrument, a new trustee or new trustees may be appointed in the place of the trustee who is removed as if he were dead or in the case of a corporation as if the corporation desired to be discharged from the trust, and the provisions of this section shall apply accordingly.

26

BLUV as at 16th December 2010

Where a corporation being a trustee is in liquidation or has been dissolved or has been removed from the register of companies or has otherwise ceased to have a corporate existence, then for the purposes of this section the corporation shall be deemed to be, and to have been from the date of the liquidation, dissolution, removal or ceasing to have a corporate existence, incapable of acting in the trusts or powers reposed in or conferred on the corporation.

The power of appointment given by subsection (1) to the personal representatives of a last surviving or continuing trustee shall be exercisable by the executors for the time being (whether original or by representation) of such surviving or continuing trustee who have proved the will of their testator or by the administrators for the time being of such trustee without the concurrence of any executor who has renounced or has not proved.

At last surviving executor intending to renounce, or all the executors where they all intend to renounce, shall have power, at any time before renouncing probate, to exercise the power of appointment given by this section if willing to act for that purpose and without thereby accepting office as an executor.

Whenever they in their discretion consider it to be for the benefit of the beneficiaries –

Every new trustee appointed under this section as well before as after all the trust property becomes by law or by assurance or otherwise vested in him shall have the same powers (including discretionary powers), authorities and discretions, and may in all respects act, as if he had been originally appointed a trustee by the trust instrument.

27

BLUV as at 16th December 2010

The provisions of this section relating to a trustee who is dead include the case of a person nominated trustee in a will but dying before the testator, and those relative to a continuing trustee include a refusing or retiring trustee if willing to act in the execution of the provisions of this section.

Where a person of unsound mind being a trustee is also entitled in possession to some beneficial interest in the trust property, no appointment of a new trustee in his place shall be made by the continuing trustees or trustee under this section unless leave has been given by the Court to make the appointment.

Supplemental provisions as to appointment of trustees.

the number of trustees may be increased;

a separate set of trustees may be appointed for any part of the trust property held on trusts distinct from those relating to any other part or parts of the trust property, notwithstanding that no new trustee or trustees is or are to be appointed for other parts of the trust property and any existing trustee may be appointed or remain one of such separate set of trustees or, if only one trustee was originally appointed, then save as hereinafter provided one separate trustee may be so appointed;

it shall not be obligatory to appoint more than one new trustee where only one trustee was originally appointed or to fill up the original number of trustees where more than two trustees were originally appointed; and

any assurance or thing requisite for vesting the trust property or any part thereof in a sole trustee or jointly in the persons who are the trustees shall be executed or done.

Retirement of trustee without new appointment.

Where a trustee wishes to be discharged from the trust and after his discharge there will be a trust corporation to act as trustee to perform the trust then, if such trustee as aforesaid declares in writing that he wishes to be discharged from the trust and if his co-trustees and such other person, if any, as is empowered to appoint trustees consent in writing to the discharge of the trustee and to the vesting in the co-trustees alone of the trust property, the

28

BLUV as at 16th December 2010

trustee wishing to be discharged shall be deemed to have retired from the trust and shall thereby be discharged under this Order without any new trustee being appointed in his place.

Any assurance or thing requisite for vesting the trust property in the continuing trustees alone shall be executed or done.

Vesting of trust property in new or continuing trustees.

Where a new trustee is appointed in writing under section 41 or 42 to perform any trust, then –

Where a retiring trustee is discharged in writing under section 43 without a new trustee being appointed, then –

An express vesting declaration shall, notwithstanding that the property, interest and right to be vested is not expressly referred to and provided that any other statutory requirements are complied with, operate (but without prejudice to any express provision to the contrary contained in the deed of appointment or discharge) to vest in the persons respectively referred to in subsections (1) and (2), as the case may require, such property, interests and rights as are capable of being and ought to be vested in those persons.

Subsections (1) to (3) do not extend to any securities, stock, annuity or property which is only transferable in books kept by a company or other body or in manner directed by or under any written law.

Application of Part VI.

The powers and provisions contained in this Part shall apply if and so far only as a contrary intention is not expressed in the trust instrument and shall have effect subject to the terms of the trust instrument concerning the appointment and discharge of trustees.

The provisions of section 44 concerning the vesting of trust property in new or continuing trustees by vesting declaration shall be capable of applying only in relation to appointments or discharges of trustees under sections 41 to 43, or under those sections as restricted by the terms of the trust instrument.

The Court may, whenever it is necessary to appoint a new trustee or new trustees and it is found inexpedient, difficult or impracticable so to do without the assistance of the

30

BLUV as at 16th December 2010

Court, make an order appointing a new trustee or new trustees either in substitution for or in addition to any existing trustee or trustees or although there is no existing trustee.

In particular and without prejudice to the generality of subsection (1) the Court may make an order appointing a new trustee in substitution for a trustee who is convicted of an offence punishable with imprisonment for not less than two years, a fine of not less than two hundred thousand dollars, or both, or is a person of unsound mind or is a bankrupt or is a corporation which is in liquidation or has been dissolved or has been removed from the register of companies or has otherwise ceased to have corporate existence or where a trustee appears to the Court for any other reason whatever to be undesirable as a trustee.

In any of the following cases, namely –

In all cases where a vesting order can be made under this section, the Court may, if it is more convenient, appoint some proper person to make or join in making the transfer.

The person in whom the right to transfer or call for the transfer of any securities is vested by an order of the Court under this Order may transfer the securities to himself or any other person according to the order and all companies shall obey every order under this section according to its tenor.

After notice in writing of an order under this section, it shall not be lawful for any company to transfer any securities to which the order relates or to pay any dividends from them except in accordance with the order.

The Court may make declarations and give directions concerning the manner in which the right to transfer any securities or thing in action vested under the provisions of this

Order is to be exercised.

The provisions of this Order as to vesting orders shall apply to shares in ships registered under any written law relating to merchant shipping as if they were securities.

Vesting orders of charity property.

appointing a person to convey or otherwise assure the property; or

in the case of securities or a thing in action, vesting the right in any person to call for a transfer of such securities, or to receive the dividends or income of them, or to sue for and recover such thing in action, upon such terms as the

Court may think fit.

Powers concerning costs.

Where property whether real or personal, movable or immovable, is held on an ordinary trust arising under any will, settlement or other disposition, the Court may if it thinks fit by order approve on behalf of –

In subsection (1), “protective trusts” means the trusts specified in sections 39(1)(a) and (b) or any like trusts; “the principal beneficiary” has the same meaning as in section 40(1); and “discretionary interest” means an interest arising under the trusts specified in section 39(1)(a) or any like trusts.

Where capital or income of trust property is or may be applicable for a charitable purpose or an authorised purpose the Court may if it thinks fit by order sanction in respect of that purpose the carrying out of any arrangement (by whomsoever proposed, including any such person as is described in section 72(2), and whether or not there is any person beneficially interested capable of assenting thereto) varying or revoking all or any of the trusts or enlarging the powers of the trustees of managing or administering any of the property subject to the trusts:

Provided that the Court shall not sanction the carrying out of any arrangement under this subsection if it would be detrimental to the purpose in respect of which such sanction is sought.

36

BLUV as at 16th December 2010

In subsection (3), “charitable purpose” means an exclusively charitable purpose but does not include an independent charitable company, association or other separate entity or organisation and “an authorised purpose” means a purpose of an authorised purpose trust.

Neither section 93(l)(b) nor section 94 shall apply to an application under this section 59, but in deciding whether to approve an application under this section the Court may have regard to any material wishes or intentions of the settlor as established by evidence adduced on the application or ascertained (directly or by inference) from the trust instrument.

Nothing in the foregoing provisions of this section shall apply to trusts affecting property settled by any written law.

Power to authorise dealings with trust property.

Where in the management or administration of any property vested in trustees any sale, lease, mortgage, surrender, release or other disposition, or any purchase, investment, acquisition, expenditure or other transaction is in the opinion of the Court expedient but the same cannot be effected by reason of the absence of any power for that purpose vested in the trustees by the trust instrument or by law, the Court may by order confer upon the trustees, either generally or in any particular instance, the necessary power for the purpose on such terms and subject to such provisions and conditions, if any, as the Court may think fit and may direct in what manner any money authorised to be expended and the costs of any transaction are to be paid or borne as between capital and income.

The Court may, from time to time, rescind or vary any order made under this section or may make any new or further order.

An application to the Court under this section may be made by the trustees or by any of them or by any person beneficially interested under the trust or (in the case of an authorised purpose trust) by any such person as is described in section 73(2).

Power to give judgment in absence of a trustee.

Trustees or the majority of trustees having in their hands or under their control money or securities belonging or alleged by such trustees to belong to a trust may pay the same into Court and the same shall, subject to rules of court, be dealt with according to the orders of the Court.

The receipt or certificate of the proper officer of the Court shall be sufficient discharge to the trustees for the money or securities so paid into Court.

38

BLUV as at 16th December 2010

Where money or securities are vested in any persons as trustees and the majority are desirous of paying the same into Court but the concurrence of the other or others cannot be obtained, the Court may order the payment into Court to be made by the majority without the concurrence of the other or others.

Where any such money or securities are deposited with any banker, broker or other depository, the Court may order payment or delivery of the money or securities to the majority of the trustees for the purpose of payment into Court.

Every transfer, payment and delivery made in pursuance of any such order of the Court shall be valid and shall take effect as if the same had been made on the authority or by the act of all the persons entitled to the money and securities so transferred, paid or delivered.

Orders in respect of funds in Court.

Such orders as shall seem fit shall from time to time be made by the Court in respect of the trust money, securities or other instruments so paid in or deposited as aforesaid or for the investment and payment of any such money or of any dividends or interest on any such money, securities or other instruments and for the transfer and delivery out of such money, securities and other instruments and for the administration of any such trusts generally upon a summons to be presented in a summary way to the Court by such party or parties as to the

Court appear to be competent and necessary in that behalf.

Service of a summons referred to in subsection (1) shall be made upon such person or persons as the Court shall determine and direct.

Every order made upon any such summons shall have the same authority and effect and shall be enforced and subject to rehearing and appeal in the same manner as if the same had been made in an action regularly commenced in the Court.

Where it appears that any such trust money, securities or other instruments cannot be safely distributed without the commencement of an action, the Court may direct such action to be commenced.

39

BLUV as at 16th December 2010

Power to give advice or directions.

A trustee may without commencing an action apply upon a written statement for the opinion, advice or direction of the Court on any question respecting the management or administration of the trust property or the assets of any testator or intestate.

Such application shall be served upon and the hearing attended by all persons interested in such application or such of them as the Court thinks expedient.

A trustee acting upon the opinion, advice or direction given by the Court shall be deemed so far as regards his own responsibility to have discharged his duty as such trustee in the subject matter of the said application.

Subsection (3) shall not indemnify any trustee in respect of any act done in accordance with such opinion, advice or direction if he is guilty of any fraud or wilful concealment or misrepresentation in obtaining such opinion, advice or direction.

The costs of such application shall be in the discretion of the Court.

Where any trustee applies for the opinion, advice or direction of the Court under this section, the written statement shall be signed by an advocate and the Court may require the applicant to attend by his advocate either in Chambers or in open Court where the Court deems it necessary to have the assistance of an advocate.

Court may make rules.

is for some abstract and impersonal purpose or purposes (whether general or specific) other than an exclusively charitable purpose or exclusively charitable purposes;

other than may be necessary to satisfy the provisions of section 69(1)(d)(ii) is not for the direct or indirect benefit of any particular ascertainable persons or class of persons (whether or not immediately ascertainable); and

does not confer on any person an interest such as would enable that person to enforce the trust otherwise than under section 69(3) or section 72, and so that, without prejudice to the generality of the foregoing, a trust for the purpose of holding securities in a company or any other assets constituting the trust property shall be deemed a purpose trust;

“enforce” in relation to a trust means to require or compel trustees to execute carry out and perform their duties under the trust instrument and to bring and prosecute proceedings to enforce the terms of the trust;

“enforcer” means a person who has a duty or power to enforce a purpose trust.

Authorised purpose trusts.

A trust instrument, whether or not it is a testamentary instrument, may declare a purpose trust if –

For the purposes of subsection (1)(c) –

In this Order, a purpose trust created in accordance with subsections (1) and (2)

is referred to as “an authorised purpose trust”.

Nothing in this Order shall prejudice directly or by implication any validity which might be enjoyed by any purpose trust that is not an authorised purpose trust.

Time provisions.

A trust instrument may declare an authorised purpose trust of capital or income to take effect in possession before or after trusts affecting the same property, including trusts for persons or exclusively charitable purposes or other purpose trusts so far as valid.

A trust instrument may provide for an authorised purpose trust to vest in interest or in possession either immediately or at a future time or on a future event or contingency.

A trust instrument may provide for an authorised purpose trust to continue either until a specified time or event (contingent or other) or indefinitely.

42

BLUV as at 16th December 2010

Allocations to purposes and methods of execution.

If and so far as a contrary intention is not expressed in the trust instrument, and subject to the terms of that instrument, the trustees of an authorised purpose trust shall have power at their absolute discretion –

If the trust instrument of an authorised purpose trust does not allocate capital or income among different purposes of the trust, or if the trustees fail to exercise a power to do so, the Court may make such an allocation as in its opinion best fulfils the intent of the settlor.

If the trust instrument of an authorised purpose trust does not state any specific, precise and certain method of carrying out any stated purpose, or if the trustees fail to exercise a power to devise and determine such methods trustees may use, or the Court may order the use of the method or methods that, in their or its opinion, best fulfil the intent of the settlor.

Applications to the Court for enforcement.

The Court may make such orders as it considers just and appropriate for the appointment of an enforcer or the enforcement of an authorised purpose trust.

Such orders may be made on the application of –

Where any costs are incurred by an applicant in connection with any application under subsection (2), the Court may make such order as it considers just as to the payment of those costs out of the assets of the trust.

43

BLUV as at 16th December 2010

At any time after the commencement of any such application the Court may make such pre-emptive orders as it thinks fit for the applicant to be indemnified out of the trust assets against any costs and expenses of or incidental to the application that the applicant may thereafter incur or be ordered to pay to other parties.

Rights to information in connection with applications.

Subject as provided in subsection (2), a person appointed under section 69(1)(d)(iii) or making an application under section 72 shall be entitled, in addition to any documents, information or other rights specifically provided for in the trust instrument, to inspect and take copies of –

Subsection (1) shall not extend to any documents brought into being for the purpose or in contemplation of the proceedings.

Termination.

if the trust instrument provides for further trusts to take effect subject to, or on the termination of, the authorised purpose trust then such further trusts shall take effect accordingly; or

otherwise the trust property and its income shall be dealt with in accordance with the provisions of the trust instrument regarding surplus assets.

44

BLUV as at 16th December 2010

In this Part, unless the context otherwise requires –

“beneficiary” means a person who will or may derive any benefit or advantage, directly or indirectly, from the execution of a special trust;

“enforce” in relation to a trust means to require or compel trustees to execute carry out and perform their duties under the trust instrument and to bring and prosecute proceedings to enforce the proper execution of the trust;

“enforcer” means a person who has a duty or power to enforce a special trust;

“power” includes an administrative power as well as a dispositive power;

“trust” include a trust of a power, as well as a trust of property; and

“trustee” has a correspondingly extended meaning.

In this Part, a power is said to be held on trust if granted or reserved subject to any duty, expressed or implied, qualified or unqualified, to exercise the power or to consider its exercise.

Application of Part IX.

A trust or power is subject to this Part and is described as a special trust, if –

Paragraphs (a), (b) and (c) of section 69(2) apply for the purposes of paragraph

If a trust or power is created by a written instrument in exercise of a special power, and the instrument contains no declaration as to the application of this Part, this Part shall, subject to evidence of a contrary intention, be deemed to be intended to apply; and for the purposes of subsection (1) the instrument shall be deemed to contain a declaration to that effect.

A trust or power that does not meet the requirements of subsections (1) and (2), and is not deemed to do so by virtue subsection (3), is not a special trust or power and is not subject to this Part.

Objects of a special trust or power.

The objects of a special trust or power may be persons or purposes or both.

The persons may be of any number.

The purposes may be of any number or kind, charitable or non-charitable, provided that they are lawful and not contrary to public policy.

General law to apply.

A beneficiary of a special trust does not as such have standing to enforce the trust, or an enforceable right against the trustee or an enforcer, or an enforceable right to the trust property.

46

BLUV as at 16th December 2010

The only persons who have standing to enforce a special trust are such persons, whether or not beneficiaries or settlors, as are appointed to be its enforcers –

The trust instrument of a special trust may either confer a power or impose a duty on an enforcer to enforce the trust.

If the trust instrument does not provide that an enforcer is to have only a power to enforce the trust then the enforcer has a duty to do so.

A power or duty to enforce a trust is presumed, subject to evidence of a contrary intention, to extend to every trust which is created by or on the terms of the same instrument, or pursuant to a power so created.

This section does not affect –

The Court may, on the application of a trustee, an enforcer or a beneficiary, appoint an enforcer –

In the circumstances described in subsection (l)(c), the trustees shall within thirty days after becoming aware that such circumstances exist apply to the Court for the appointment of an enforcer, or for the administration of the special trust under the direction of the Court, or for such other order as the Court shall think fit and a trustee who knowingly fails to do so shall be guilty of an offence and liable on conviction to a fine not exceeding twenty thousand dollars.

Duties of an enforcer.

An enforcer with a duty to enforce a special trust has a duty to act responsibly with a view to enforcing the proper execution of the trust.

An enforcer with a power to enforce a special trust has a duty to consider responsibly at such intervals as the enforcer reasonably considers appropriate whether and how to exercise the power and then to act accordingly.

A trustee or another enforcer, or any person expressly authorised by the trust instrument, has standing to bring and prosecute an action against an enforcer to compel him to perform his duties.

Rights of an enforcer.

Subject to the provisions of subsection (2), an enforcer is entitled, in addition to any documents, information or other rights specifically provided for in the trust instrument, to examine and take copies of –

Subsection (1) shall not extend to any documents brought into being for the purposes or in contemplation of any legal proceedings brought by the enforcer.

An enforcer has the same rights as a person with a beneficial interest under an ordinary trust to bring administration and other actions for the good of the trust and to make for the good of the trust any applications to the Court for an opinion, advice or direction or otherwise.

An enforcer has the rights of a trustee of an ordinary trust to protection, indemnity and payment of expenses out of trust property, and to make applications to the Court under section 51.

An enforcer has, on behalf of the trust, the same personal and proprietary remedies for breach of trust against a trustee and against third parties as a beneficiary of an ordinary trust.

Uncertainty.

Subject to subsection (4)(b), a special trust is not rendered void by uncertainty as to its objects or mode of execution.

The terms of a special trust may give to the trustee or any other person power to resolve any uncertainty as to its objects or mode of execution.

If a special trust has two or more objects and the trust instrument does not allocate the trust property among them, then if and so far as a contrary intention is not expressed in the trust instrument, and subject to the terms of that instrument, the trustees of the trust have power in their absolute discretion to allocate capital and income among the different purposes of the trust.

If any uncertainty as to the objects or mode of execution of a special trust or as to the allocation of trust property among its objects cannot be resolved, or has not been resolved pursuant to the terms of the trust, the Court –

49

BLUV as at 16th December 2010

This section applies to powers as to trusts.

Reformation and termination.

impossible or impracticable; or

unlawful or contrary to public policy; or

obsolete in that, by reason of changed circumstances it fails to achieve the general intent of the special trust, the trustee shall, unless the trust is reformed pursuant to its own terms, apply to the Court to reform the trust cy-prés or, if or insofar as the Court finds that it cannot be reformed consistently with the general intent of the trust, the trustee shall dispose of the trust property as though the trust or the relevant part of it has failed.

Trusteeship.

Except as authorised by an order of the Court, or permitted by or pursuant to this section the trustees shall keep in Brunei Darussalam at the office of the trust corporation a documentary record of –

The Court may authorise non-compliance with subsection (1) on such terms as it thinks fit if it is satisfied that the execution of the trust will not be prejudiced.

A person who, in Brunei Darussalam or elsewhere, knowingly administers a special trust while there is a breach of subsection (l)(a), apart from –

A trustee who knowingly fails to comply with subsection (l)(b) shall be guilty of an offence and liable on conviction to a fine not exceeding twenty thousand dollars.

This section does not apply to the holder of a power which is granted or reserved by the terms of a special trust to a person other than the trustees of the special trust, even though the power is held in trust.

This section does not apply (except as regards any antecedent offence) if the governing law of the trust has been changed from the law of Brunei Darussalam.

The Authority, with the approval of His Majesty the Sultan and Yang Di-Pertuan, may make regulations restricting the application of subsection (1).

Theft.

Section 378 of the Penal Code (Chapter 22) does not apply in relation to special trusts.

51

BLUV as at 16th December 2010

For the purposes of the Penal Code, property held upon a special trust shall be regarded, as against the trustee of the property or of any power in relation to the trust, and against any enforcer of the trust, as belonging to others (except to the extent of the beneficial interest, if any, of the trustee or enforcer under the terms of the trust), and an intention on the part of any such trustee or enforcer to defeat the trust shall be regarded accordingly as an intention to deprive others of their property.

Information to settlors.

A trust instrument may contain provisions by virtue of which the exercise by the trustees of any of their powers and discretions shall be subject to the previous consent of the settlor or of some other person as protector, and if so provided in the trust instrument the trustees shall not be liable for any loss caused by their actions if the previous consent was given and they acted in good faith.

A person may charge reasonable remuneration for his services as protector unless otherwise provided by the trust instrument.

52

BLUV as at 16th December 2010

Managing and custodian trustees.

A trust instrument may contain provisions by virtue of which the exercise of any of the trustee’s powers may be reserved to a managing trustee and no other trustee shall be liable for any of the decisions, acts or transactions of the managing trustee in so far as they amount to exercise of powers reserved by the trust instrument to the managing trustee.

A trust instrument may appoint a person to be custodian trustee of any trust in any case where such person could be appointed to be trustee, in the same manner as it could be so appointed.

Subject to the provisions of the trust instrument where a custodian trustee is appointed of any trust –

Subject to the provisions of the trust instrument and to any order made by the

Court, in any case where remuneration or commission is payable to the trustee of any trust property, remuneration may be paid to both the custodian trustee and the managing trustees.

Disclosure.

Subject to the terms of the trust instrument and subsection (2) –

When a beneficiary entitled to information under subsection (1)(a) is a minor or is determined by the trustees acting in good faith to be of unsound mind –

Save as provided by subsection (1)(b), and unless a person vested by the trust instrument with power to request or approve disclosure requests or approves such disclosure, trustees shall be under no legal obligation to disclose the existence of their trusts to –

Subject to the provisions of subsection (9), trustees may nonetheless in their absolute discretion without any such request or approval disclose the existence of their trusts to such persons as are mentioned in subsection (3)(a), (b) or (c) if such disclosure is necessary or convenient in connection with distributions to such persons, or if the trustees in their absolute discretion consider such disclosure to be in the interest of the trust as a whole.

The following provisions shall have effect with respect to the disclosure of documents –

The documents referred to in subsection (5) are –

When disclosing any documents or information to any beneficiary or other person the trustees shall, if other beneficiaries have requested confidentiality or if the trustees in their absolute discretion determine confidentiality to be in the best interest of such other beneficiaries, take all reasonable steps to secure the right to confidentiality of the other beneficiaries by providing such beneficiary or other person only with such documents or information as enable that beneficiary’s own true entitlement and actual interest or benefits under the trust to be determined; such documents and information may include copies or certified extracts of the trust instrument or other documents and copies of advices or statements from which the names and interests of other beneficiaries have been edited or deleted in order to preserve the confidentiality to which such other beneficiaries are entitled.

Notwithstanding anything to the contrary in this section, trustees shall not be bound or compelled by any process of discovery or inspection or under any equitable rule or principle to disclose or produce to any beneficiary or other person any of the following documents, that is to say –

56

BLUV as at 16th December 2010

Without prejudice to the provisions of subsection (10), no disclosure of the kind otherwise required or permitted by subsections (4), (5)(b) or (5)(e) shall be made by trustees in breach of any prohibition or restriction of such disclosure contained in the trust instrument.

No such prohibition or restriction, and nothing in this section, shall prejudice the validity of any trusts or the entitlement of any beneficiaries who have in any manner become aware of any trusts to obtain orders of the Court for administration or accounts, or for the execution of the trusts, or any other order of the Court not being an order for the discovery, inspection, disclosure or production of such documents as are described in subsection (8), or for any information or disclosure which by subsections (2)(b), (3), (5)(a) or (9) trustees are under no legal obligation to make.

Validation of appointments where objects are excluded or take illusory shares.

No appointment made in exercise of any power to appoint any property among two or more objects shall be invalid on the ground that –

This section does not affect any provision in the instrument creating the power that declares the amount of any share from which any object of the power is not to be excluded.

Validation of powers and discretionary trusts.

Neither powers for trustees, settlors, protectors or others to add to the beneficiaries of a trust, or to appoint trust property among a class of persons, nor any discretionary trusts, shall be invalid on the ground that it is not possible to ascertain with certainty all the potential beneficiaries of the power or trust, or on the ground that the class of potential beneficiaries is unlimited, or limited only by the exclusion of specified persons.

The validity of a trust shall not be prejudiced by the inclusion of any power or discretion whose validity is preserved by subsection (1).

Power to continue to accumulate income.

When a trust instrument expressly directs the accumulation of income –

This section shall apply if and so far only as a contrary intention is not expressed in the trust instrument and shall have effect subjects to the terms of that instrument.

Termination and modification by beneficiaries.

Notwithstanding any rule of equity or practice of the Court to the contrary, but subject to section 59(5), neither a beneficiary who is solely interested in the trust property, nor all the beneficiaries who together are all the persons interested in it, shall be entitled, though in

58

BLUV as at 16th December 2010

existence and ascertained and of full capacity, to terminate or modify the trusts affecting the property, if this would either be contrary to the terms of the trust instrument or would defeat a material purpose of the settlor in creating the trust, unless the settlor is living and also consents.

The material purposes of the settlor for the purpose of subsection (1) may be ascertained from the trust instrument (directly or by inference) or by collateral evidence.

Distribution of shares.

The rules of equitable apportionment known as the Rule in Howe v. Earl of

Dartmouth, the Rule in Re Earl of Chesterfield’s Trusts and the Rule in Allhusen v. Whittell shall not (in any of their branches) apply to an international trust.

Whenever trustees of an international trust in their discretion determine that property held by them for successive interests is not (when considered as a whole) so invested as to maintain a fair balance between beneficiaries interested in current income and other beneficiaries, or that a particular receipt disturbs that balance, the trustees may apportion income receipts to capital of the trust property or apportion capital receipts to income of the trust property so far (if at all) as they in their discretion consider necessary in order to restore such balance.

On the application of a beneficiary (whether or not under a disability) aggrieved by any act or failure to act by trustees under subsection (2) the Court may give such directions as the Court may think fit for the purpose of redressing such grievance.

A trustee who has acted in good faith shall not be personally liable for the costs of any other party to any such application and the costs of such a trustee of such an application shall be provided for out of the trust property or its income.

59

BLUV as at 16th December 2010

Subsections (2), (3) and (4) shall apply if and so far only as a contrary intention is not expressed in the trust instrument and shall have effect subject to that instrument.

Incorporation by reference.

A trust instrument may incorporate or exclude by reference any of the provisions set out in the Second Schedule, with or without any modifications.

In any such provisions so incorporated, unless a contrary intention appears –

Powers conferred on the trustees by any provisions incorporated as above shall be in addition and without prejudice to other powers conferred on the trustees by law or by the trust instrument.

Memorandum of trust property.

any rule against or limiting accumulation of trust funds under sections 164, 165

or 166 of the Law of Property Act, 1925 of the United Kingdom; or

the rule of law prohibiting the limitation, after a life interest to an unborn person, of an interest in land to the unborn child or issue of an unborn person; or

any rule against perpetuities or against perpetual trusts, to the intent that an international trust may continue in perpetuity.

Charitable trusts.

For the purposes of international trusts –

The requirement of subsection (l)(a) that the facilities are provided in the interests of social welfare shall not be treated as satisfied unless –

Subject to the said requirement, subsection (l)(a) applies in particular to the provision of facilities at village halls, community centres and men’s, women’s and mixed social clubs and women’s institutes, and to the provision and maintenance of grounds and buildings to be used for purposes of recreation or leisure-time occupation, and extends to the provision of facilities for those purposes by the organising of any activity.

An international trust shall not fail to qualify as a trust for charitable purposes only on the ground that its purposes may benefit the public or a section of the public outside

Brunei Darussalam either partially or exclusively.

Fraudulent dispositions.

Subject to the provisions of this section, every disposition of property to or in favour of the trustees of an international trust as such trustees or to or in favour of any beneficiaries of an international trust as such beneficiaries shall, if made with an intent to defraud and at an undervalue, be voidable at the instance of a creditor thereby prejudiced.

In subsection (1) –

The burden of establishing an intent to defraud for the purposes of this section shall be upon the creditor seeking to set aside the disposition.

62

BLUV as at 16th December 2010

No action or proceedings pursuant to this section shall be entertained unless commenced within six years after the relevant disposition.

If a disposition is set aside under this section then –

The burden of proving that a trustee or beneficiary has acted in bad faith shall be upon the person making the allegation.

A disposition shall be set aside pursuant to this section only to the extent necessary to satisfy the debt or liability to the creditor at whose instance the disposition had been set aside together with such costs as the Court may allow.

63

BLUV as at 16th December 2010

Nothing in this section –

Nothing in this section shall create or enable to be enforced any right claim or interest avoided or defeated by section 108.

Neither section 172 of the Law of Property Act, 1925 (in so far as it applies in and is in force in Brunei Darussalam) nor any rule of law or equity other than this section concerning settlements or other dispositions for no or for inadequate consideration or concerning dispositions defeating or delaying creditors shall apply to any disposition of property to or in favour of the trustees of an international trust as such trustees or to or in favour of any beneficiaries of such a trust as such beneficiaries.

This section shall apply to a disposition wherever the property is situated at the time of the disposition and even though the disposition is not (apart from this section) governed by the law of Brunei Darussalam; and this section shall so apply to the exclusion of any foreign law.

Trust law.

The governing law of an international trust shall be the law of Brunei

Darussalam.

Subject to the provisions of this Order, in the application of the law of Brunei

Darussalam to an international trust, the law of trusts shall be taken to be the same as the law applicable to trusts in England on 1st. January, 2000, with the exception of the statutory provisions of the United Kingdom specified in the Third Schedule.

64

BLUV as at 16th December 2010

The exclusion of those provisions does not imply that any earlier statutory provisions repealed by those provisions are to apply.