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Appointment Retirement P-4

The document discusses the appointment, retirement, and removal of trustees. It outlines who can be a trustee, how a trustee accepts or disclaims a trust, the rights of beneficiaries if there are no trustees. It also describes how a trustee can be discharged from their duties and replaced, including by consent, court order or due to certain events like death, insolvency or unfitness. The process for appointing new trustees is also explained.

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Raj Chouhan
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177 views13 pages

Appointment Retirement P-4

The document discusses the appointment, retirement, and removal of trustees. It outlines who can be a trustee, how a trustee accepts or disclaims a trust, the rights of beneficiaries if there are no trustees. It also describes how a trustee can be discharged from their duties and replaced, including by consent, court order or due to certain events like death, insolvency or unfitness. The process for appointing new trustees is also explained.

Uploaded by

Raj Chouhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Appointment, Retirement

&
Removal of Trustee
10. Who may be trustee
• Every person capable of holding property may be a
trustee; but, where the trust involves the exercise of
discretion, he cannot execute it unless he is competent
to contract.
• No one bound to accept trust : No one is bound to
accept a trust.
• Acceptance of trust: A trust is accepted by any words or
acts of the trustee indicating with reasonable certainty
such acceptance.
• Disclaimer of trust : Instead of accepting a trust, the
intended trustee may, within a reasonable period,
disclaim it, and such disclaimer shall prevent the trust-
property from vesting in him.
• A disclaimer by one of two or more co-trustees vests the
trust-property in the other or others, and makes him or
them sole trustee or trustees from the date of the
creation of the trust.
Sec 59. Right to sue for execution of trust

• Where no trustees are appointed or all the


trustees die, disclaim, or are discharged,
or where for any other reason, the
execution of a trust by the trustee is or
becomes impracticable, the beneficiary
may institute a suit for the execution of the
trust, and the trust shall, so far as may be
possible, be executed by the court until the
appointment of a trustee or new trustee.
How a trustee ceases to be trustee

• The office of a trustee is vacated by his


death or by his discharge from his office
(sec. 70).
Sec 71. Discharge of trustee
The trustee may be discharged from his office only as
follows:-
• (a) by the extinction of the trust;
• (b) by the completion of his duties under the trust;
• (c) by such means as may be prescribed by the
instrument of trust;
• (d) by appointment under this Act of a new trustee in his
place;
• (e) by consent of himself and the beneficiary, or, where
there are more beneficiaries than one, all the
beneficiaries being competent to contract; or
• (f) by the court to which a petition for his discharge is
presented under this Act.
Sec72. Petition to be discharged from trust

Notwithstanding the provisions of section 11,


every trustee may apply by petition to a principal
civil court of original jurisdiction to be discharged
from his office; and if the court finds that there is
sufficient reason for such discharge, it may
discharge him accordingly, and direct his costs
to be paid out of the trust-property. But where
there is no such reason, the court shall not
discharge him, unless a proper person can be
found to take his place.
Sec73. Appointment of new trustees
• any person appointed a trustee disclaims,
• or any trustee, either original or substituted, dies, or is for
a continuous period of six months absent from India, or
• leaves India for the purpose of residing abroad, or
• is declared an insolvent, or
• desires to be discharged from the trust, or
• refuses or
• becomes, in the opinion of a principal civil court of
original jurisdiction, unfit or personally incapable to act in
the trust, or
• accepts an inconsistent trust.
Who can appoint new trustee
• (a) the person nominated for that purpose by the
instrument of trust (if any), or
• (b) if there be no such person, or no such person able
and willing to act, the author of the trust if he be alive
and competent to contract, or
• (c) the surviving or continuing trustees or trustee for the
time being, or legal representative of the last surviving
and continuing trustee, or
• (with the consent of the court) the retiring trustees, if they
all retire simultaneously, or (with the like consent) the
last retiring trustee.
• Every such appointment shall be by writing under the
hands of the person making it. On an appointment of a
new trustee the number of trustees may be increased.
Sec74. Appointment by court
• Whenever any such vacancy or
disqualification occurs and it is found
impracticable to appoint a new trustee
under section 73, the beneficiary may,
without instituting a suit, apply by petition
to a principal civil court of original
jurisdiction for the appointment of a trustee
or a new trustee, and the court may
appoint a trustee or a new trustee
accordingly.
Rule for selecting new trustees :
In appointing new trustees, the court shall have
regard
(a) to the wishes of the author of the trust as
expressed in or to be inferred from the
instrument of trust;
(b) to the wishes of the person, if any, empowered
to appoint new trustees;
(c) to the question whether the appointment will
promote or impede the execution of the trust;
and
(d) where there are more beneficiaries than one, to
the interests of all such beneficiaries.
75. Vesting of trust-property in new trustees
• Whenever any new trustee is appointed under section 73
or section 74, all the trust-property for the time being
vested in the surviving or continuing trustees or trustee,
or in the legal representative of any trustee, shall
become vested in such new trustee, either solely or
jointly with the surviving or continuing trustees or trustee,
as the case may require.
• Powers of new trustees: Every new trustee so appointed,
and every trustee appointed by a court either before or
after the passing of this Act, shall have the same
powers, authorities and discretions, and shall in all
respects act, as if he had been originally nominated a
trustee by the author of the trust.
76. Survival of trust
On the death or discharge of one of several
co-trustees, the trust survives and the
trust-property passes to the others, unless
the instrument of trust expressly declares
otherwise.
• (a) A bequeaths certain property to B and
C, his executors, as trustees for D. B and
C prove A's will.

• (b) A transfers certain property to B in trust


to sell it and to pay out of the proceeds A's
debts.

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