Provision for changing in trustee
purshotam vyas
(Querist) 14 December 2013
This query is : Resolved
Dear all,
our company has formed gratuity trust in 2011 and now company want to change its trustee.
I want to know what procedure for changing trustee as per indian law in force now.
Further trust deed say that
"The Trustees may at any time by a resolution in writing signed by not less than two of them and with consent of employer in writing as also of the insurer where the variation has a bearing on the terms and conditions of the master policy issued by the insurer but not otherwise, alter, vary or amend any of the provisions of this trust deed & rule.
provided further that no such alteration or variation in the ruels, constitution, objects or conditions shall be made without the prior consent of the commissioner of income tax"
As per trust deed i need to pass a resolution but before this we need to take prior consent from income tax department. but after approval of income tax and passing resolution should i require to change trust deed whole or anything else ?
Please assist in this matter with your comment.
Thanks in advance.
Devajyoti Barman
(Expert) 14 December 2013
For change of trustee you need ot amend the trust deed.
T. Kalaiselvan, Advocate
(Expert) 14 December 2013
A trust deed wherein any changes to be incorporated need to be re-drafted with necessary amendments made therein accordingly.
purshotam vyas
(Querist) 16 December 2013
Trust deed also says that the employer has power to appoint the trustee. he can remove any trustee or appoint by giving notice.
So under this clause we do not require to take prior approval from income tax authority. Because changing in trustee is not change in provision of trust deed and income tax prior approval require when there is change in provision of trust deed.
And can we do like that we remain same trust deed as original and attach a copy of resolution stating changing in trustee ?
Thanks
purshotam vyas
(Querist) 16 December 2013
Dear Barman sir, i could not understand is it "need not" or "need to" amend the trust deed.
Thanks
Devajyoti Barman
(Expert) 16 December 2013
It is typing error.
I meant to say for addition or change of trustee there is no need to make amendment of trust deed.
purshotam vyas
(Querist) 16 December 2013
Thank you so much sir, one more thing that on gratuity trust which act or law applicable if trust is situated in west bengal.
