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BURNS PHILP TRUSTEE COMPANY LIMITED BILL 1990*
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
Burns Philp Trustee Company Limited has' arranged to transfer most of its trust
business to Permanent Trustee Company Limited (the new Trustee).
The objects of this Bill are-
(a) to effect the transfer; and
(b) to substitute the new Trustee for Burns Philp in any appointment or nomination
of Bums Philp as trustee (whenever made).
Certain trusts will be excluded from the proposed Act. These are the Burns Philp
Group Share Plans and the Estate Mortgage Trusts (defined in proposed section 7 as
"excluded trusts").
Burns
Philp has several common trust funds. These trust funds comprise trust
property and non-trust property (being money deposited for investment). Non-trust
property invested in a common trust fund will not be affected by the proposed Act.
Trust property invested in a common trust fund will vest in the new Trustee under the
proposed Act but will remain as part of the fund. Burns Philp will retain management of
the fund but will hold trust property on behalf of the new Trustee and account to the
new Trustee in respect of its management. The new Trustee may request Burns Philp at
any time to transmit the whole or any part of the trust property to the new Trustee.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on the date of
assent.
Clause 3 sets out the objects of the Act.
Clause 4 defines expressions used in the proposed Act.
Clause 5 provides for the transfer of trust property from Burns Philp to the new
Trustee.
Clause 6 provides for the new Trustee to take the place of Burns Philp in any
appointment or nomination of Burns Philp as trustee.
* Amended in committee -- see table aa end of volume.
(a) Burns Philp Group Share Plans;
(b) Estate Mortgage Trusts.
Clause 8 makes provision in relation to the common trust funds established by
Burns Philp (as outlined above).
Clause 9 provides that Burns Philp will continue to be liable for any breach of
trust occurring prior to the appointment of a provisional liquidator on 19 October 1990.
Clause 10 contains evidentiary provisions intended to facilitate the registration of
the new Trustee as the owner of property vested in it pursuant to the proposed Act.
Clause 11 provides for exemptions from stamp duty and registration fees which
otherwise would be incurred in giving effect to the proposed Act.
Clause 12 requires Burns Philp to account to the new Trustee for any income
Burns Philp may receive from trust property after it is transferred.
Clause 13 provides for the new Trustee to be joined as a party in legal proceedings
in addition to, or instead of, Burns Philp.
Clause 14 provides for the new Trustee to have access to relevant records and
documents held by Bums Philp.
Clause 15 requires Bums Philp and the new Trustee to do everything necessary to
transfer to the new Trustee trust property that is not able to be transferred pursuant to
the proposed Act.