Victorian Consolidated Legislation

Charities Act 1978 - SECT 7B

PART IA APPROVAL FOR INVESTMENT IN COMMON FUNDS

Powers of trustees under this Part

7B. Powers of trustees under this Part



(1) The trustees of any property given for charitable purposes in respect of
which this Part applies may-

   (a)  establish one or more investment common funds for the collective
        investment of that property held by or in the custody of the trustees;

   (b)  invest that property held by or in the custody of the trustees in one
        or more investment common funds.

(2) The trustees of any property given for charitable purposes in respect of
which this Part applies, from time to time without liability for breach of
trust, may bring into or withdraw from any investment common fund the whole or
any part of that property, despite any direction to the contrary (whether
express or implied) contained in the trust instrument.

(3) Subject to subsection (4), the trustees of any property given for
charitable purposes in respect of which this Part applies must periodically
distribute the income of each investment common fund among the trusts
participating in the common fund, having regard to the extent of the
participation by each trust in the common fund during the relevant accounting
period.





(4) The trustees of any property given for charitable purposes in respect of
which this Part applies, if they consider it expedient to do so, may, from
time to time-

   (a)  add some portion of the income of the common fund to the capital of
        the common fund; or

   (b)  use some part of the income to establish or augment a fund or funds as
        a provision against capital depreciation or reduction of income.

(5) The trustees of any property given for charitable purposes in respect of
which this Part applies may, out of the annual income of a trust in an
investment common fund, periodically deduct an amount not exceeding 5% of that
annual income as commission for the administration of that trust.

(6) The commission deducted in accordance with subsection (5) is to be
received and accepted by the trustees of any property given for charitable
purposes in respect of which this Part applies as full payment to them for the
costs of administration of the trust in an investment common fund.

(7) The trustees of any property given for charitable purposes in respect of
which this Part applies must not make any other charges on a trust in an
investment common fund in addition to the commission received under subsection
(6), except in accordance with the trust instrument.