Share Trustee is appointed by a main holding corporation of a Special Purpose Vehicle (SPV) to hold the legal ownership (i.e.: company shares) of the SPV. The Share Trustee is usually not a related party to the main holding corporation of the SPV.
The Trustee has to hold the legal ownership (i.e.: company shares) of the Special Purpose Vehicle (SPV) under a trust for identified beneficiaries. The Trustee has to administer and exercise the powers in relation to the trust fund in accordance with the provisions of the trust agreement.
The key role of Security Trustee (also known as Security Agent) is to hold the security for the best interest of the parties involved under the issuance of corporate bond/sukuk. The security being held can be a charge over property, a debenture over the assets, a debenture over the undertaking of a company, a bank account charge or a combination of other types of security for the performance of obligations as stated in the transaction documents.
The Trustee has to hold, administer and safeguard the security that is pledged under the corporate bond/sukuk issuance. The Trustee has to operate and monitor the designated accounts on behalf of the bond holders as required by the transaction documents.
Corporate Bond Trustee is appointed by a corporate institution (i.e.: bond issuer) to represent and protect the interest of the bond holders in accordance with the trust deed. The Corporate Bond Trustee has to act as a focal point for interaction between the bond holders and the Issuer. The Corporate Bond Trustee has a fiduciary responsibility to act at the best interest of the bond holder.
The Trustee has to represent and protect the interest of the holders according to the trust deed, relevant transaction documents and Securities Commission Malaysia's guidelines. The Trustee also has to act as a focal point for interaction between the bond holders and the issuers to ensure that the issuers are always in compliance with the covenants as stated in the trust deed, to administer and monitor the relevant designated accounts as per the transaction accounts.