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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Hi, What does trustees of a limited by guarantee/charity must

Resolved Question:

Hi, What does trustees of a limited by guarantee/charity must do to ensure in leasing a property for more than 100 years to one of the trustees that they are not breaking the law?
What happens if a minority of the trustees do not agree to it/or aware of it? Can these minority trustees prosecute when they find out.
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

The trustee who is leasing the property must do so on arm's length terms and have a proper lease or tenancy agreement in place with the charity and pay market rent.

Trustees are not supposed to place themselves in positions of conflict of interest and duty and if the lease or tenancy is not on fair commercial terms, the other trustees may complain to the court to set aside the transaction and for orders to remove the trustee from their position and to pay the charity market value.

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