TRUSTEE ACT 1925 - SECT 14D
Powers of trustee in relation to securities
TRUSTEE ACT 1925 - SECT 14D
Powers of trustee in relation to securities
14D Powers of trustee in relation to securities
(1) If securities of a body corporate are subject to a trust, the trustee may
concur in any scheme or arrangement--
(a) for or arising out of the
reconstruction, reduction of capital or liquidation of, or the issue of shares
by, the body corporate, or
(b) for the sale of all or any part of the
property and undertaking of the body corporate to another body corporate, or
(c) for the acquisition of securities of the body corporate, or of control of
the body corporate, by another body corporate, or
(d) for the amalgamation of
the body corporate with another body corporate, or
(e) for the release,
modification or variation of rights, privileges or liabilities attached to the
securities, or any of them,
in the same manner as if the trustee were
beneficially entitled to the securities.
(2) The trustee may accept instead
of, or in exchange for, the securities subject to the trust securities of any
denomination or description of another body corporate party to the scheme or
arrangement.
(3) If a conditional or preferential right to subscribe for
securities in a body corporate is offered to a trustee in respect of a holding
in that body corporate or another body corporate, the trustee may, as to all
or any of the securities--
(a) exercise the right and apply capital money
subject to the trust in payment of the consideration, or
(b) assign to any
person, including a beneficiary under the trust, the benefit of the right, or
the title to the right, for the best consideration that can be reasonably
obtained, or
(c) renounce the right.
(4) A trustee accepting or subscribing
for securities under this section is, for the purposes of any provision of
this Division, exercising a power of investment.
(5) A trustee may retain
securities accepted or subscribed for under this section for any period for
which the trustee could properly have retained the original securities.
(6)
The consideration for an assignment made under subsection (3) (b) is to be
held as capital of the trust.
(7) This section applies in relation to
securities acquired before or after the commencement of the Trustee Amendment
(Discretionary Investments) Act 1997 , subject to the instrument (if any)
creating the trust.