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.
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 3 years ago in Business Law
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
8 Answers
As a member of the trust, I have paid Rs.1.10 lakhs to the trust specifically to carry out the construction of a compound wall. This wall has not been constructed and the Managing Trustee has been unreachable over phone, email and whatsapp.Can I get a refund of my amount?
Asked 3 years ago
'Filing a suit' route will take its own time in the court.Is there something that can be done to clear the payment of the vendors?
Asked 3 years ago
You can seek refund of money paid by you since no compound wall was constructed
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
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.
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.
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.
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
You need to file a suit for specific relief and seek injunction
