TRUSTEES ACT 1962 - SECT 15
TRUSTEES ACT 1962 - SECT 15
15 . Custodian trustees, appointment and functions of
(1) Subject to the
provisions of this section and to the instrument (if any) creating the trust,
any corporation may be appointed to be custodian trustee of any trust in any
case where, and in the same manner as, it could be appointed to be trustee.
(2) Subject to the
provisions of the instrument (if any) creating the trust, where a custodian
trustee is appointed of any trust —
(a) the
trust property shall be vested in the custodian trustee as if the custodian
trustee were the sole trustee, and for that purpose vesting orders may, where
necessary, be made under this Act; and
(b) the
management of the trust property and the exercise of all powers and
discretions exercisable by the trustee under the trust shall be and remain
vested in managing trustees other than the custodian trustee (in this Act
called the managing trustees ) as fully and effectually as if there were no
custodian trustee; and
(c) the
sole function of the custodian trustee shall be to get in and hold the trust
property and invest its funds and dispose of the assets as the managing
trustees in writing direct, for which purpose the custodian trustee shall
execute all such documents and perform all such acts as the managing trustees
in writing direct; and
(d) for
the purposes of paragraph (c), a direction given by the majority of the
managing trustees, where there are more than one, shall be deemed to be given
by all the managing trustees; and
(e) the
custodian trustee shall not be liable for acting on any direction to which
paragraph (c) refers; but if the custodian trustee is of opinion that any such
direction conflicts with the trusts or the law, or exposes the custodian
trustee to any liability, or is otherwise objectionable, the custodian trustee
may apply to the Court for directions in the matter; and any order giving
directions shall bind both the custodian trustee and the managing trustees;
and the Court may make such order as to costs as it thinks proper; and
(f) the
custodian trustee shall not be liable for any act or default on the part of
any of the managing trustees; and
(g) all
actions and proceedings touching or concerning the trust property shall be
brought or defended in the name of the custodian trustee at the written
direction of the managing trustees, and the custodian trustee shall not be
liable for the costs thereof apart from any payable out of the trust property;
and
(h) a
person dealing with the custodian trustee shall not be concerned to inquire as
to the concurrence or otherwise of the managing trustees or be affected by
notice of the fact that the managing trustees have not concurred; and
(i)
the power of appointing new trustees, when exercisable by
the trustee, shall be exercisable by the managing trustees alone, but the
custodian trustee shall have the same power as any other trustee of applying
to the Court for the appointment of a new trustee.
(3) On the application
of the custodian trustee or of any of the managing trustees or of any
beneficiary and on satisfactory proof that it is the general wish of the
beneficiaries or that on other grounds it is expedient to terminate the
custodian trusteeship, the Court may make an order for that purpose and may
also make such vesting orders and give such directions as in the circumstances
seem to the Court to be necessary or expedient.
(4) Subject to the
provisions of the instrument (if any) creating the trust and to any order made
by the Court, where remuneration or commission is payable to the trustee of
any trust property, remuneration may be paid to both the custodian trustee and
the managing trustees, and subject as aforesaid the amount thereof shall be
—
(a) as
regards the custodian trustee, where the custodian trustee is the Public
Trustee, as prescribed under the Public Trustee Act 1941 ; and
(b) in
any other case, as may be determined by the managing trustees if they are
entitled to fix their own remuneration, or by the Court.
[Heading inserted: No. 1 of 1997 s. 6.]
[ 15A. Deleted: No. 1 of 1997 s. 6.]