PUBLIC TRUSTEE ACT 1978 - SECT 60
Public trustee may direct audit of trusts
PUBLIC TRUSTEE ACT 1978 - SECT 60
Public trustee may direct audit of trusts
60 Public trustee may direct audit of trusts
(1) Any person may make a request in writing to the public trustee for an
investigation and audit of the condition and accounts of a trust.
(2) If, in
the public trustee’s opinion, the person’s interests are, or may be,
adversely affected by the trust’s operation, the public trustee may serve a
notice of such request on such trustees and beneficiaries other than the
applicant as the public trustee thinks desirable and a person on whom such
notice is served may make representations to the public trustee as to the
desirability of the investigation and audit.
(3) After the expiration of 14
days from the date when the last of the notices under subsection (2) has been
served and upon the payment to the public trustee by the person who has
requested the investigation and audit of such sum (if any) as the public
trustee shall order the person to pay as security for any costs and expenses
of the investigation and audit, the public trustee may, if it appears to the
public trustee desirable, appoint, by writing under the public trustee’s
hand and seal, some person (the
"auditor" ) to carry out an investigation and audit of the condition and
accounts of the trust.
(a) on production to any trustee of
such writing evidencing the auditor’s appointment by the public trustee,
shall have the right to inspect and to take possession of any books, accounts
and documents relating to the trust and which are under the control of the
trustees or any of them, and may require from any trustee such information and
explanation as the auditor considers reasonably necessary for the performance
of the auditor’s duties; and
(b) on production to any other person or body
of such writing evidencing the auditor’s appointment by the public trustee,
shall have the right to inspect and to take copies of all books, accounts and
documents relating to the trust which are under the control of such person or
body.
(5) Any person, unless lawfully excused (proof whereof shall lie on the
person)—
(a) being a trustee, shall furnish to the auditor any information
or explanation required by the person in accordance with subsection (4) ; and
(b) shall allow the auditor to inspect or take possession of or take copies of
any book, account or document which the auditor has the right to inspect, take
possession of or take copies of pursuant to subsection (4) ; and
(c) shall
not in any way obstruct the carrying on of an investigation or audit pursuant
to this section.
Penalty—
Maximum penalty—10 penalty units.
Penalty—
Daily penalty—2 penalty units.
(6) The auditor, on the
completion of the investigation and audit, shall forward to the public trustee
a report as to the condition and accounts of the trust, including the nature
and state of investment of the trust assets, and the public trustee shall
thereupon supply a copy of the report to the applicant and to every trustee.
(7) It is a lawful excuse for the publication of any defamatory statement made
in a report by an auditor under subsection (6) that the publication is made in
good faith and is made for the purposes of this section or purports to be so
made.
(8) Every beneficiary under the trust shall be entitled at all
reasonable times to inspect a copy of the report and, at the beneficiary’s
own expense, to be furnished with a copy thereof or of extracts therefrom.
(9) The appointment of the auditor may be terminated by the public trustee,
and, thereupon, or if an auditor resigns or dies before the investigation and
audit is completed, a new auditor may be appointed in the auditor’s place by
the public trustee.
(10) The remuneration of the auditor and the other
expenses of the investigation and audit shall be such as may be prescribed
and, if not prescribed, as the public trustee considers reasonable, and shall
be payable out of the trust property unless the public trustee orders that
they be paid by the person who has requested the investigation and audit, or
by the trustees or any of them personally, or by any 2 or more of such
persons, and in such proportions, as the public trustee directs, in any of
which cases they shall be payable by such person or persons accordingly.
(11)
A person aggrieved by any decision pursuant to subsection (10) may apply to
the court and the court may make such order as appears just.
(12) A person
who wilfully makes a statement which is false in any material particular in
any information, explanation, statement of accounts, report or certificate
required pursuant to this section shall be guilty of an offence.
Penalty—
Maximum penalty—
(a) on indictment—10 penalty units or
imprisonment for 2 years; or
(b) on summary conviction—5 penalty units or
imprisonment for 6 months.
(13) The report forwarded by the auditor
pursuant to subsection (6) shall be admissible in evidence in any proceedings
relating to the trust.
(14) In this section—
"documents" includes vouchers, correspondence, instruments of title and other
papers.
(15) This section shall not apply to a trust of which a trustee
company as defined by the Trustee Companies Act 1968is a trustee.
