TRUSTEE ACT 1925 - SECT 22 New shares in company

TRUSTEE ACT 1925 - SECT 22

    (1)     Where a preferential right to subscribe for a security in a company is offered to a trustee in respect of any holding in the company, he or she may—

        (a)     exercise the right and apply capital money subject to the trust in payment of the consideration; or

        (b)     renounce the right; or

        (c)     assign the benefit of the right for the best consideration that can reasonably be obtained to any person, including a beneficiary under the trust.

    (2)     Where a trustee assigns the benefit of the right, the consideration received by him or her for the assignment shall be held as capital money of the trust.

    (3)     If—

        (a)     a preferential right to subscribe for shares in a company is offered to the trustee; and

        (b)     the shares are subject to a special or reserve liability; and

        (c)     the company is wound up;

the trustee may exercise the right and hold the shares as if they were part of the trustee's original holding in the company.

    (4)     The trustee shall not be responsible for any loss occasioned by anything done honestly.

    (5)     The powers conferred by this section shall be exercisable subject to the consent of any person whose consent to a change of investment is required by law or by the trust instrument.

    (6)     This section applies to a trust except so far as the contrary intention appears in the trust instrument.