Regarding trust act
prabakar ranganathan
(Querist) 11 June 2023
This query is : Resolved
Registered trust having 5 trustees and 2 trustees have resigned and 1 trustee not coming for the trust board meeting for acceptance of resignation of 2 trustees .what is the quorum ..for accepting the resignation...
kavksatyanarayana
(Expert) 12 June 2023
It will be 2/3 rds majority in trusts, but as per trust deed what is the quoram? Issue notice to convey trust meeting, the majority decide as per attendance for the trust meeting.
prabakar ranganathan
(Querist) 12 June 2023
No quorum mentioned in the trust deed, what should be done for accepting the resignation of two trustees and appointment of two new trustees
prabakar ranganathan
(Querist) 12 June 2023
Can acceptance of resignation of two trustees and appointment of two new trustees be done in the same meeting
T. Kalaiselvan, Advocate
(Expert) 12 June 2023
A trust will typically have at least two trustees. However, at some point during the life of a trust, trustees may retire, die, or simply want to stop being a trustee. It is, therefore, common for trustees to be replaced or for new trustees to be appointed during the duration of the trust.
Discharge of trustee The trustee may be discharged from his office only as follows:- (a) by the extinction of the trust; (b) by the completion of his duties under the trust; (c) by such means as may be prescribed by the instrument of trust; (d) by appointment under this Act of a new trustee in his place; (e) by consent of himself and the beneficiary, or, where there are more beneficiaries than one, all the beneficiaries being competent to contract; or (f) by the court to which a petition for his discharge is presented under this Act.
Dr. J C Vashista
(Expert) 14 June 2023
Implications of Trustee Resignation
Impact on Trust Administration
A trustee's resignation can temporarily disrupt the administration of the trust. However, with proper planning and communication, the transition to a successor trustee can minimize any negative effects.
Potential Legal Consequences
If a trustee resigns without following the proper procedures outlined in the trust agreement or state law, they may face legal consequences, such as liability for breach of fiduciary duty or other claims from beneficiaries.
Effect on Trust Assets and Beneficiaries
The resignation of a trustee can impact trust assets and beneficiaries, particularly if the trustee's resignation is sudden or unexpected. A smooth transition to a successor trustee can help mitigate any adverse effects on the trust's assets or beneficiaries.
P. Venu
(Expert) 14 June 2023
Any suggestion depends upon the trust deed and the law under which the trust is registered.
