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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Is there an obligation on a trustee to get the consent and

Resolved Question:

Is there an obligation on a trustee to get the consent and signature of the other trustee before disposing of a trust asset. Is there a case precedent on this point.
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
What sort of trust asset is it?
Customer: replied 3 years ago.

tract of land for development held by a UK co [SPV] in trust for an overseas co. The UK directors who signed the trust deed initially made a clandestine sale of the land and the overseas company who was a joint trustee with the UK company of the land knew nothing about it.

Expert:  UKSolicitorJA replied 3 years ago.
Unless the UK company was a trust corporation, it could not give a valid receipt for the sale proceeds, under S 14(2) of the Trustee Act 1925

http://www.legislation.gov.uk/ukpga/Geo5/15-16/19

Hope this helps
Customer: replied 3 years ago.

Thank you. Is there any general rule that all trustees must sign off a sale or can one of the trustees act on their own which is what has happened in this case?

Expert:  UKSolicitorJA replied 3 years ago.

As provided in the Trustee Act 1925, at least 2 individual trustees may sign off or one trustee if it is a trust corporation.

 

For more information on what is a trust corporation, see here:

 

 

http://uk.practicallaw.com/9-500-1090?service=privateclient#



Hope this clarifies.

Customer: replied 3 years ago.

i am sorry to keep pressing on with this.It would be helpful to know the section of the act which states the requirement of two individual trustees. The trustee which disposed of the land without the knowledge of the other trustee was a company [though not a trust corporation] is that the same as an 'individual' please? If the company has infringed the act what is the action one should now take against that company and its directors who were win fact the same people who signed the trust declaration.

Expert:  UKSolicitorJA replied 3 years ago.
Yes, it would be deemed to be an individual if not a trust corporation.Please see S. 14(2) of the Trustee Act 1925 which I have referred to previously.

I hope this answers your queries.
Customer: replied 3 years ago.

Thank you. Would their infringement be a criminal offence under the act or a civil matter? How would a civil matter be pursued?

Expert:  UKSolicitorJA replied 3 years ago.
I am afraid your original query has been answered and you have not left feedback. I will have to opt out
Customer: replied 3 years ago.

Sorry don't want to go on and on and thought rating came at conclusion . All Excellent so far. Do I need to pay to get this final answer - please advise.


 

Expert:  UKSolicitorJA replied 3 years ago.
It would be a civil matter and a claim may be made in the courts by using form N1.

All the best
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