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2. Appointment of a Trustee

2.1 Subject to Article (162) of the Commercial Companies Law, every corporation and every other entity which makes an offer or invitation to the public in respect of Debt Securities shall make provision in those Debt Securities or in a trust deed relating to those Debt Securities for the appointment of a trustee corporation as trustee for the holders of the Debt Securities within one month from the allotment date.
2.2 Subject to Article (162) of the Commercial Companies Law, without permission of the Agency, a trustee corporation shall not be appointed, hold office or act as trustee for the holders of Debt Securities of a borrowing corporation if that trustee corporation is:—
(a) a shareholder who beneficially holds shares in the borrowing corporation;
(b) beneficially entitled to monies owned by the borrowing corporation to it;
(c) a corporation that has entered into a guarantee in respect of the principal debt secured by those Debt Securities or in respect of interest thereon; or
(d) a corporation that is related to:—
(i) any corporation referred to in paragraphs (a), (b) and (c); or
(ii) the borrowing corporation.
2.3 If default is made in complying with this requirement, the corporation and every officer of the corporation who is in default shall be guilty of an offence and shall be liable on conviction to a fine as stated in Articles (361) or (362) of the Commercial Companies Law, as the case may be.