TRUSTEE ACT 1925 - SECT 40 Powers

TRUSTEE ACT 1925 - SECT 40

    (1)     If trust property consists of or includes a share or interest in property (or the proceeds of the sale of property) not vested in the trustee, or any other thing in action, then, when it comes into possession or becomes payable or transferable, the trustee may—

        (a)     agree on or work out the amount or value of it, or any part of it, in any way the trustee considers appropriate; and

        (b)     accept in or towards satisfaction of it, at market or current value, or on any valuation or estimate of value that the trustee considers appropriate, any securities authorised by the trust instrument or by law for the investment of money subject to the trust; and

        (c)     allow any deductions for duties, costs or charges that the trustee considers proper or reasonable; and

        (d)     execute a release in relation to it.

    (2)     The trustee is not responsible for loss caused by anything done honestly under subsection (1).

    (3)     Unless and until required in writing so to do by some person beneficially interested under the trust or by the guardian of his or her person or estate, and unless also due provision is made to his or her satisfaction for payment of the costs of any proceedings required to be taken, the trustee shall not be under any obligation—

        (a)     to apply for any stop or other like order upon any securities or other property out of or on which such share or interest or other thing in action is derived payable or charged; or

        (b)     bring proceedings for any act or omission by anyone in whom the securities or other property (or any part) is or has been vested.

    (4)     The trustee may if he or she thinks fit refer any of the matters mentioned in subsection (3) to the person beneficially entitled or to the guardian of his or her person or estate.

    (5)     The trustee shall not be chargeable with breach of trust by reason of any omission in any of the matters mentioned in subsection (3), except when required and upon due provision made as mentioned in the subsection.

    (6)     Nothing in this section shall relieve a trustee of the obligation to get in and obtain payment or transfer of any such share or interest or other thing in action on the same falling into possession.

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