Appointment of trustees in a trust for csr purpose
sreenath
(Querist) 18 January 2018
This query is : Resolved
I have a query related to creation of trust by a public limited Company and appointing its whole time directors as trustees.
One of the Company proposed to establish a trust for spending it's CSR expenses through a Trust created by that Company.My queries are;
1. Can the Company appoint it's MD and Whole Time directors as sole trustees of that trust?
2.Whether permission of shareholders of the Company is required for creation of Trust?
Adv Shailendra Deshpande
(Expert) 22 January 2018
Being a public limited company, you need to take permission of concerned Govt first who is likely to be major stakeholder. It is possible to appoint MD and Directors as trustees with their permission. The purpose for CSR through Trust needs to be cleared especially the activities related with funds raising and expenditure.
sreenath
(Querist) 22 January 2018
Thank you.this company doesn't have investment from government.this is not government company.
From your opinion I understood that, it is possible to create a public trust with MD and whole time directors are solely trustees.
Hemant Agarwal
(Expert) 09 February 2018
1. A Trust can be formed and conducted ONLY by invididuals, irrespective of the Title they hold in any another entity. PERIOD.
Keep Smiling .... Hemant Agarwal
