TRUSTEE ACT 1936 - SECT 10
TRUSTEE ACT 1936 - SECT 10
10—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 Part, 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) must be held as capital of
the trust.
(7) This section
applies in relation to securities acquired before or after the commencement of
the Trustee (Investment Powers) Amendment Act 1995 but subject to the
instrument creating the trust.