Victorian Consolidated Legislation

Trustee Companies Act 1984 - SECT 21

PART IV COMMISSIONS AND CHARGES

Commission chargeable by trustee company

21. Commission chargeable by trustee company



(1) In respect of an estate committed (whether before or after the
commencement of this section) to the administration or management of a trustee
company as executor, administrator, trustee or as sole guarantor or surety or
as guardian of any minor or in any other capacity, the trustee company shall
be entitled to receive out of the estate, in addition to all moneys properly
expended by the trustee company and chargeable against the estate, a
commission to be fixed from time to time by the directors of the trustee
company but not in any case exceeding-

   (a)  $5.50 for every $100 of the gross value of the estate; and



   (b)  $6.60 for every $100 of income received by the trustee company on
        account of the estate.



(2) Subject to this Act and to the
State Trustees (State Owned Company) Act 1994-

   (a)  the commission determined under subsection (1) shall be received and
        accepted by the trustee company as full recompense and remuneration to
        it for acting in the administration or management of the estate; and

   (b)  no other charges beyond the commission and the moneys so expended by
        the trustee company shall be made by the trustee company.

(3) Notwithstanding subsections (1) and (2), if, in any case, on application
by or on behalf of any person interested in the estate made upon summons
served on the trustee company, the Supreme Court is of opinion that the
commission is excessive, the Supreme Court may review and reduce the rate of
the commission.

(4) The commission charged by a trustee company on the gross value of an
estate or on the income of an estate (whether the estate was committed to the
administration or management of the trustee company before or after the
commencement of this section) shall not exceed-

   (a)  in relation to estates committed to the trustee company-

   (i)  before 1 July 2000-the amount of the published scale of charges of the
        company current at the time when the estate was committed to it plus
        10%;

   (ii) on or after 1 July 2000-the amount of the published scale of charges
        of the company current at the time when the estate was committed to
        it;

   (b)  in the case of income received in respect of any perpetual trust
        committed to the trustee company (whether before or after the
        commencement of this Act) the amount of the published scale of charges
        of the company applicable to income of trust estates as current from
        time to time.

(5) A trustee company shall lodge with the Commissioner a copy of a scale of
charges of the trustee company.





(6) Any commission which a trustee company is entitled to receive in respect
of an estate may be paid or deducted out of the estate at any time after the
estate has been committed to the administration or management of the company.

(7) A trustee company is not entitled to draw any commission in respect of any
portion of an estate that has not been distributed over and above an amount of
commission which is calculated-

   (a)  on the value of that portion at the time it was so committed to the
        administration or management of the company; and

   (b)  at the rate charged at the time when the estate was committed to the
        administration or management of the company-

the amount of commission so drawn being adjusted when that portion of the
estate has been distributed.

(8) Nothing in this section prevents the receipt by a trustee company from an
estate, in lieu of commission referred to in the preceding subsections, of any
commission directed to be allowed or paid by the testator, settlor or other
person by whom the estate is committed to the administration or management of
the trustee company notwithstanding that the commission so directed to be
allowed or paid is in excess of the commission referred to in the preceding
subsections.

(9) In this section, a reference to a published scale of charges of a trustee
company-

   (a)  includes a reference to a scale a copy of which is lodged with the
        Commissioner under this section; and



   (b)  does not include a reference to a scale of charges published after the
        commencement of this section unless a copy of that scale has been
        lodged with the Commissioner.

(10) This section does not apply where a trustee company is appointed as an
administrator under the Guardianship and Administration Act 1986.