A. Introducing the confusion May. Who would have thought that a one syllable word can cause so much of confusion! Yet, here we are interpreting the intention of the legislature in using the word ‘may’ in Section 23 of the Companies Act, 2013 (“2013 Act“) and its implications. The 2013 Act became effective in stages
50. Trustee may not charge for services.—In the absence of express directions to the contrary contained in the instrument of trust or of a contract to the contrary entered into with the beneficiary or the Court at the time of accepting the trust, a trustee has no right to remuneration for his trouble, skill and
49. Control of discretionary power.—Where a discretionary power conferred on a trustee is not exercised reasonably and in good faith, such power may be controlled by a principal Civil Court of original jurisdiction. Complete: The Indian Trusts Act, 1882
48. Co-trustees cannot act singly.—When there are more trustees than one, all must join in the execution of the trust, except where the instrument of trust, otherwise provides. Complete: The Indian Trusts Act, 1882
47. Trustee cannot delegate.—A trustee cannot delegate his office or any of his duties either to a co-trustee or to a stranger, unless (a) the instrument of trust so provides, or (b) the delegation is in the regular course of business, or (c) the delegation is necessary, or (d) the beneficiary, being competent to contract, consents
46. Trustee cannot renounce after acceptance.—A trustee who has accepted the trust cannot afterwards renounce it except (a) with the permission of a principal Civil Court of original jurisdiction, or (b) if the beneficiary is competent to contract, with his consent, or (c) by virtue of a special power in the instrument of trust. Complete: The
45. Suspension of trustee’s powers by decree.—Where a decree has been made in a suit for the execution of a trust, the trustee must not exercise any of his powers except in conformity with such decree, or with the sanction of the Court by which the decree has been made, or, where an appeal against
44. Power to several trustees of whom one disclaims or dies.—When an authority to deal with the trust property is given to several trustees and one of them disclaims or dies, the authority may be exercised by the continuing trustees, unless from the terms of the instrument of trust it is apparent that the authority
43. Power to compound, etc.—Two or more trustees acting together may, if and as they think fit,— (a) accept any composition or any security for any debt or for any property claimed; (b) allow any time for payment of any debt; (c) compromise, compound, abandon, submit to arbitration or otherwise settle any debt, account, claim or thing whatever
42. Power to give receipts.—Any trustees or trustee may give a receipt in writing for any money, securities or other movable property payable, transferable or deliverable to them or him by reason, or in the exercise of any trust or power; and, in the absence of fraud, such receipt shall discharge the person paying, transferring