PUBLIC TRUSTEE ACT 1995 - SECT 17
PUBLIC TRUSTEE ACT 1995 - SECT 17
(1) The Public Trustee
may be appointed to be custodian trustee of a trust—
(a) by
order of the Court made on the application of a beneficiary or of a person on
whose application the Court may order the appointment of a new trustee; or
(b) by
the instrument constituting the trust; or
(c) by
any person authorised to appoint new trustees.
(2) An order may be
made by the Court or an appointment made by a person authorised to appoint new
trustees whenever or however the trust may have been created or arisen.
(3) On appointment of
a custodian trustee—
(a) the
trust property must be transferred to the custodian trustee as if that trustee
were sole trustee, and for that purpose orders may be made by the Court
vesting the property in the custodian trustee; and
(b)
those persons who would, if there were no custodian trustee, be the sole
trustees of the trust have the management of the trust property; and
(c) as
between the custodian trustee and the managing trustees (without prejudice to
the rights of any other persons) the custodian trustee will have the custody
of all securities and documents of title relating to the trust property, but
the managing trustees will have free access to them and be entitled to take
copies of or extracts from them.
(4) Subject to
subsection (5), the custodian trustee must do all things necessary to
enable the managing trustees to perform their functions and exercise their
powers under the trust.
(5) Nothing in
subsection (4) requires the custodian trustee to do anything that is a
breach of trust or subjects the custodian trustee to a personal liability.
(6) The custodian
trustee is not liable for any act or default of the managing trustees to which
the custodian trustee has not consented.
(7) All money payable
from the trust estate must be paid by the custodian trustee and all money
payable to the trust estate must be paid to the custodian trustee or as that
trustee directs.
(8) If the custodian
trustee directs that trust property be delivered to the managing trustees or
at their direction, the custodian trustee is not responsible for the
application of that property or for its loss or misapplication.
(9) The custodian
trustee does not have power to appoint a new trustee but is entitled to apply
to the Court for the appointment of a new trustee in the circumstances in
which the managing trustees could apply to the Court for that purpose.
(10) On application by
the custodian trustee or any of the managing trustees or any beneficiary, the
Court may—
(a)
terminate the custodian trusteeship; and
(b) make
such vesting orders and give such directions as are necessary,
if it is satisfied that—
(c)
termination of the trusteeship is the wish of the majority of beneficiaries;
or
(d)
there are other reasons that make such an order expedient.
(11) The custodian
trustee or the managing trustees may submit a dispute between them to the
Court and the Court may determine the matters in dispute in such manner as it
considers just.