Section 89
of International Trusts Order, 2000
Section 89
(1)
A trust instrument may contain provisions by virtue of which the exercise of any of the trustee’s powers may be reserved to a managing trustee and no other trustee shall be liable for any of the decisions, acts or transactions of the managing trustee in so far as they amount to exercise of powers reserved by the trust instrument to the managing trustee.
(2)
A trust instrument may appoint a person to be custodian trustee of any trust in any case where such person could be appointed to be trustee, in the same manner as it could be so appointed.
(3)
Subject to the provisions of the trust instrument where a custodian trustee is appointed of any trust –
(a)
trust property may be vested in the custodian trustee;
(b)
the management of the trust property and the exercise of all powers and discretions exercisable by the trustee under the trust shall remain vested in the managing trustees;
(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 a majority of the managing trustees in writing direct;
(d)
the custodian trustee shall not be liable for acting on any such direction;
(e)
the custodian trustee shall not be liable for any act or default on the part of any of the managing trustees;
(f)
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 liable for the costs thereof apart from the trust property;
(g)
no person dealing with the custodian trustee shall 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;
(h)
the power of appointing new trustees, when exercisable by the trustee, shall be exercisable by the managing trustees alone, but the custodian
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trustee shall have the same power as any other trustee of applying to the
Court for the appointment of a new trustee.
(4)
Subject to the provisions of the trust instrument and to any order made by the
Court, in any case 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.
Disclosure.