PART IV - ISSUES OF SECURITIES AND TAKE-OVERS AND MERGERS DIVISION 5 - UNIT TRUST SCHEMES AND PRESCRIBED INVESTMENT SCHEMES
Section 101. Replacement of trustee.
(1) Where no provision has been made in the deed for the appointment of a successor to a retiring trustee, the management company 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 has been approved by the Commission under section 98 and who is a person eligible to be appointed or to act as trustee under section 99.
(2) The Commission may, on the application of the management company, a unit holder or of its own accord-
(a) appoint, as trustee, a person who is eligible to be appointed or to act as trustee under section 99 if-
(i) a 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 99 if-
(i) the existing trustee is not eligible to be appointed or to act as trustee under section 99;
(ii) the existing trustee fails or refuses to act in accordance with the provisions or covenants of the 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) Except for subparagraph (2)(a)(ii) , a trustee shall be given the opportunity to be heard before the Commission takes any action under subsection (2) .
(4) A management company who contravenes subsection (1) shall be guilty of an offence.