Victorian Consolidated Legislation

Melbourne University Act 1958 - SECT 37

Power to appoint the corporation of the University custodian trustee of trust properties constituting endowments

37. Power to appoint the corporation of the University custodian trustee of
trust properties constituting endowments



(1) Where trust property constituting the endowment of any scholarship,
exhibition or prize awarded by the University or constituting any other
endowment of the University is held by trustees other than the body politic
and corporate of the University itself (hereinafter referred to as the
corporation) the person having power to appoint new trustees may by deed
appoint the corporation to be the custodian trustee of the trust property.

(2) The power to appoint the corporation to be custodian trustee may be
exercised whether or not the number of trustees has been reduced below the
original number.

(3) Upon every such appointment being made the following provisions shall have
effect-

   (a)  the trust property shall where necessary be transferred to the
        corporation as if the corporation were the sole trustee and for that
        purpose vesting orders may where necessary be made under the
        Trustee Act 1958 or the Transfer of Land Act 1958;

   (b)  the management of the trust property and the exercise of any power or
        discretion exercisable by the trustees under the trust shall remain
        vested in the trustees other than the corporation (which trustees are
        hereinafter referred to as the managing trustees);

   (c)  as between the corporation and the managing trustees, and subject and
        without prejudice to the rights of any other persons, the corporation
        shall have the custody of all securities and documents of title
        relating to the trust property, but the managing trustees shall have
        free access thereto and be entitled to take copies thereof or extracts
        therefrom;

   (d)  the corporation shall concur in and perform all acts necessary to
        enable the managing trustees to exercise their powers of management or
        any other power or discretion vested in them (including the power to
        pay money or securities into court) unless the matter in which the
        corporation is requested to concur is a breach of trust, or involves a
        personal liability on the corporation in respect of calls or
        otherwise, but unless the corporation so concurs the corporation shall
        not be liable for any act or default on the part of the managing
        trustees or any of them;

   (e)  all sums payable to or out of the income or capital of the trust
        property shall be paid to or by the corporation:

Provided that the corporation may allow the dividends and other income derived
from the trust property to be paid to the managing trustees or to such person
as they direct or into such authorised deposit-taking institution within the
meaning of the Banking Act 1959 of the Commonwealth to the credit of such
person as they direct, and in such case shall be exonerated from seeing to the
application thereof and shall not be answerable for any loss or misapplication
thereof;

   (f)  the power of appointing new trustees, when exercisable by the
        trustees, shall be exercisable by the managing trustees alone, but the
        corporation when so appointed as aforesaid shall have the same power
        of applying to the court for the appointment of a new trustee as any
        other trustee; and

   (g)  in determining the number of trustees for the purposes of the
        Trustee Act 1958 the corporation shall not be reckoned as a trustee.

(4) The corporation shall not be appointed as custodian trustee where the will
settlement or other instrument creating the trust contains a direction to the
contrary.

(5) This section applies whether the trust was created before or after the
passing of this Act.