PART IV - ISSUES OF SECURITIES AND TAKE-OVERS AND MERGERS DIVISION 4 - DEBENTURES Subdivision 1 - Trust deeds, duties of trustees, borrowers, etc.
Section 71. Replacement of trustee.
(1) Where no provision has been made in the debenture or trust deed for the appointment of a successor to a retiring trustee, the borrower shall, within one month after becoming aware of the intention of the trustee to retire, appoint as successor to the retiring trustee a trustee who is a person eligible to be appointed or to act as trustee under section 69.
(2) A Court may, on the application of the borrower, a debenture holder or the Commission-
(a) appoint, as trustee, a person who is eligible to be appointed or to act as trustee under section 69 if-
(i) the trustee has not been validly appointed; or
(ii) the trustee has ceased to exist; or
(b) terminate the appointment of an existing trustee and appoint in his place, as trustee, a person who is eligible to be appointed or to act as trustee under section 69 if-
(i) the existing trustee is not eligible to be appointed or to act as trustee under section 69;
(ii) the existing trustee fails or refuses to act in accordance with the provisions or covenants of the trust deed or the provisions of this Act;
(iii) a receiver is appointed over the whole or a substantial part of the assets or undertaking of the existing trustee and has not ceased to act under that appointment, or a petition is presented for the winding up of the existing trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the existing trustee becomes or is declared to be insolvent) ; or
(iv) the trustee is under investigation for conduct that contravenes the Trust Companies Act 1949, the Trustee Act 1949, the Companies Act 1965 or any securities law.
(3) A borrower who contravenes subsection (1) shall be guilty of an offence.