• Managing Trustee Unreachable for months

We are a registered trust in Bangalore. The Managing trustee/signatory has gone incommunicado and has been unreachable for over 2 months mid-way through a project. The vendors have stopped work and are awaiting payment.

What are our options as trustees and members of the trust?
Asked 5 months ago in Business Law

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8 Answers

suit can be filed for theremoval of the trustee or for settlement of a scheme for the purpose of effectively carrying out the objects of the trust. If there is a breach of trust or mismanagement on the part of the trustee, a suit can be brought in a civil court by any person interested for the removal of the trustee and for the proper administration of the endowment.

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

You can seek refund of money paid by you since no compound wall was constructed 

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

Who are the signatories for the payments to be made as per trust deed kindly clarify 

 

you can call meeting of trustees pass resolution to add 2 more signatories for making payment 

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

The rule is that a trust should not fail for want of a trustee. Hence, where no trustees are appointed, or where all die, or disclaim or discharged under law, or where for any other reason a trust cannot be executed or becomes impossible, the beneficiary may institute-a suit in the court.

The trustee will always have duties, or the trust will become passive and legal title will pass to the beneficiaries.

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

If you have donated the amount to the trust then it may not be able to be reclaimed 

the donations received for specific purpose of acquiring the capital assets are tied up grants and cannot be treated as income u/s 2(24)(ii)(a) of I.T.Act.

the donations were received for specific purpose for acquiring the fixed assets. This is evidenced by the letters placed before us from the donors. The funds are not freely available to the assessee society, for utilizing its objectives other than acquiring specified assets. The entire amount received for acquiring the fixed assets.

Hence it cannot be reclaimed.

 

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

At common law, when there were multiple trustees, each had an obligation to participate in trust administration unless otherwise specified. When one trustee breached his or her fiduciary duty, the other trustees were required to compel him or her to redress it. Under the UTC, co-trustees are required to exercise reasonable care, to participate in the performance of the trustee’s functions, unless they are effectively assigned to another co-trustee, and act by majority decision.

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

1. The relevant defunct /infructuous /incommunicado Trustees can be removed by "No Confidence" vote, in consultation with the Trust Registering Authority (typically the Charity Commissioner). New Trustees may be appointed /inducted, by following due procedures of law.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

You need to file a suit for specific relief and seek injunction

Prashant Nayak
Advocate, Mumbai
26719 Answers
79 Consultations

4.4 on 5.0

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