JUDICIAL TRUSTEE RULES

JUDICIAL TRUSTEE RULES

JUDICLAL TRUSTEE RULES.

7

ARRANGEMENT OF RULES.

Rule.
1.Citation................................ ... ... ... ... ... ... ... 93

Appointment of Judicial Trustee.

2.Mode of making application ... ... ... ... ... ... ... ... ... B3

3.Service of summons ........... ... ... ... ... ... ... ... ... ... B3

4.Statement to be supplied on application ... ... ... ... ... ... B3

5. Removal of restriction as to appointment of certain persons to be

trustees ............................. ... ... ... ... ... ... ... 94

6.Power to make vesting or other orders ... ... ... ... ... ... B4

Appointment of Official of Court to be Judicial Trustee.

7.Appointment of Registrar General ... ... ... ... ... ... ... B4

Administration of the Trust.

8.Statement of trust property ... ... ... ... ... ... ... ... ... B5

9.Security ......................... ... ... ... ... ... ... ... ... B5

10.Trust account at bank and custody of documents ... ... ... ... B6
11.Judicial trustee not to keep money in his hands ... ... ... ... B7

12.Directions to judicial trustees ... ... ... ... ... ... ... ... ... B7

13.Powers to dispense with formal evidence ... ... ... ... ... ... B7

Accounts and Audit.

14.Accounts and audit ........... ... ... ... ... ... ... ... ... ... B 7

15.Filing and inspection of accounts ... ... ... ... ... ... ... ... B 8

16.Deductions allowed ........... ... ... ... ... ... ... ... ... ... B 8

Remuneration and Allowances.

17.Remuneration of judicial trustee ... ... ... ... ... ... ... ... B 8

18.Application of remuneration of official of the court ... ... ... ... B9

19.Forfeiture of remuneration ... ... ... ... ... ... ... ... ... B 9

Removal and Suspension of Judicial Trustee.

20.Suspension of judicial trustee ... ... ... ... ... ... ... ... ... B9
21.Removal of judicial trustee ... ... ... ... ... ... ... ... ... B9

22.Inquiry into conduct of judicial trustee ... ... ... ... ... ... ... B10





Rule. Page.
Resignation and Discontinuance of Judicial Trustee.

23.Resignation of judicial trustee ... ... ... ... ... ... ... ... ... B 10

24.Discontinuance of judicial trustee ... ... ... ... ... ... ... ... ... B10

Special Trusts.

25.Executors and administrators ... ... ... ... ... ... ... ... ... B 10

26.Special trusts .............. ... ... ... ... ... ... ... ... ... Bil

Exercise of the Powers of the Court.

27.Exercise of powers of court ... 1 . ... ... ... ... ... ... Bil

28.Communications between judicial trustee and court ... ... ... ... Bil

29.Fees ............................. ... ... ... ... ... ... ... ... B 12

30.Definition of 'officer of the court' ... ... ... ... ... ... ... B 12

31.Service ............................. ... ... ... ... ... ... ... ... B 12

Schedule..Fees....................... ... ... ... ... ... ... ... ... ... ... B 12





JUDICIAL TRUSTEE RULES.

(Cap. 29, section 64).

[18th December, 1953.]

1. These rules may be cited as the Judicial Trustee Rules.

Appointment of Judicial Trustee.

2. An application to the court to appoint a judicial trustee shall be
in the Supreme Court. and

(a)if not made in a pending cause or matter, shall be made by
originating summons; and

(b)if made in a pending cause or matter, shall be made as part of
the relief claimed, or by summons in the cause or matter.

3. (1) The summons shall be served-

(a)where the application is made by or on behalf of a trustee, on
the other trustee (if any); and

(b)where the application is made by or on behalf of a beneficiary,
on the trustees (if any),

and in either case on such (if any) of the beneficiaries as the court
directs.

(2) Where the application is made by or on behalf of a person
creating or intending to create a trust, the summons subject to any
direction of the court, need not be served on any person.

(3) The court may give any directions it thinks fit, either dispensing
with the service of the summons on any person on whom it is required
to be served under this rule, or requiring the service of the summons on
any person on whom it is not required to be served under this rule.

4. (1) Where an application is made for the appointment of a judicial
trustee by originating summons, the applicant shall, when he takes out
the summons, supply for the use of the court a Written statement
signed by him containing the following particulars so far as he can gain
information with regard to them

(a)a short description of the trust and instrument by which it is,
or is to be, created, and of the relation which the applicant
bears to the trust;

(b)if a person is nominated as judicial trustee, the name and
address of the person nominated, and short particulars of the
reasons which lead to his nomination;

(c)if a person is nominated as judicial trustee, a statement
whether it is proposed that the person nominated should be
remunerated or not;





(d)short particulars of the trust property, with an approximate
estimate of its income, and capital value;

(e)short particulars of the incumbrances (if any) affecting the
trust property,

a statement whether it is proposed that the judicial trustee
should be a sole trustee or should act jointly with other
trustees;

(g)particulars as to the persons who are in possession of the
documents relating to the trust;

(h)the names and addresses of the beneficiaries and short
particulars of their respective interests,

(i)any exceptional circumstances specially affecting the
administration of the trust.

(2) An affidavit by the applicant verifying the statement shall be
sufficient prima facie evidence of the particulars contained in the
statement.

(3) Where the applicant cannot gain the information necessary for
making the required statement on any point, he must mention the fact in
his statement.

5. (1) The court shall not be precluded by any existing practice as
to the appointment of trustees from appointing any person to be a
judicial trustee by reason of that person being a beneficiary, or a
relation or husband or wife of a beneficiary, or a solicitor to the trust or
to the trustee, or to any beneficiary, or a married woman, or standing in
any special position with regard to the trust.

(2) A person may be appointed to be a judicial trustee of a trust
although he is already a trustee of the trust.

6. On the appointment of any person to be judicial trustee the court
shall make such vesting or other orders and exercise such other powers
as may be necessary for vesting the trust property in the judicial trustee
either as sole trustee or jointly with other trustees as the case requires.

Appointment of Official of Court to be Judicial Trustee.

7. (1) Where an official of the court is appointed judicial trustee, the
Registrar General shall be so appointed, unless, for special reasons, the
court directs that some other official of the court shall be so appointed.

(2) Any official of the court appointed to be a judicial trustee shall,
on his ceasing to hold office, cease to be such a trustee without any
formal resignation.





(3) Where an official of the court is judicial trustee, any trust
property vested in or held by him, shall be vested in and held by him
under his official title and not in his own name.

(4) Where an official of the court appointed to be a judicial trustee
of a trust dies, or ceases to hold office, his successor in office shall,
unless the court otherwise directs, become judicial trustee of the trust
without any order of the court of formal appointment, and the trust
property shall, without any conveyance, assignment, or transfer, in such
a case become vested in the successor as it was vested in his
predecessor in office.

(5) For the purpose of the definition of 11 official of the court', in
section 65 of the Ordinance, any Paid office in or connected with the
court shall be a prescribed office.

Administration of the Trust.

8. (1) A judicial trustee shall, unless in any case the court considers
that it is unnecessary, as soon as may be after his appointment, furnish
the court with a complete statement of the trust property, accompanied
with an approximate estimate of the income and capital value of each
item.

(2) The judicial trustee shall give such information to the court as
may be necessary for the purpose of keeping the statement of the trust
property correct for the time being.

9. (1) A judicial trustee, if not an official of the court, shall give
security to the court for the due application of the trust property, unless
the court dispenses with security under this rule.

(2) The court may, on the appointment of a judicial trustee, or at
any time during his continuance in office as judicial trustee, dispense
with security on the application either of the person who is to be
appointed or is judicial trustee, or of any person appearing to the court
to be interested in the trust, and shall do so where a judicial trustee is
appointed on the application of a person creating or intending to create
a trust, and that person desires that security should be dispensed with,
unless for special reasons the court considers that security is in such a
case necessary or desirable.

(3) The security shall be given, either by recognizance, bond, or
otherwise, as the court directs, and with such sureties as the court
approves.

(4) If the court is satisfied that sufficient provision is made for the
safety of the capital of the trust property, the amount of the security
shall, in ordinary cases, be an amount exceeding by twenty per cent the
annual income of the trust property as estimated by the court.





(5) The court may at any time require that the amount or
nature of the security given by a judicial trustee under this rule
be varied, or that security be given where it has previously been
dispensed with, and a judicial trustee shall comply with any such
requirement.

(6) It shall be a condition of every recognizance, bond, or
other form of security given under this rule that the judicial trustee
shall give immediate notice to the court of the death or insolvency
of any of his sureties.

(7) Any recognizance, bond, or other form of security given
for the purpose of this rule may be vacated in such manner and
subject to such conditions as the court may direct.

(8) Where security is not dispensed with, the appointment
of a person to be judicial trustee shall not take effect until he has
given the security required by the court under this rule.

(9) Any premium payable by a judicial trustee to any guar-
antee company on account of his security may, if the court so
directs, be paid out of the trust property.

10. (1) When a judicial trustee is appointed, a separate
account for receipts and payments on behalf of the trust shall be
kept in the name of the trustees at some bank approved by the
court.

(2) all title deeds and all certificates and other documents
which are evidence of the title of the trustee to any of the trust
property shall be deposited either with that bank or in such other
custody as the court directs.

(3) The deeds or documents shall be deposited in the names
of the trustees, and the judicial trustee shall give notice to the body
or person with whom the deeds or documents are so deposited not
to deliver any of them over to any person except on a request sign-
ed by the judicial trustee and countersigned by the officer of the
court, and also to allow any person authorized by the officer of the
court in writing to inspect them during business hours.

(4) The judicial trustee shall deposit with the court a list of
all deeds or documents deposited in any custody in pursuance of
this rule, and shall give information to the court from time to time
of any variation to be made in the list.

(5) The judicial trustee shall. if at any time directed by the
court, give an order to the bank at which the trust account is kept,
not to pay at any one time any sum over a specified amount out
of the trust account except on an order countersigned by the
officer of the court.

(6) Any payments on account of the income of the trust
property may be provided for by means of a standing order to
the bank at which the trust account is kept.





(7) The court may give such directions to the judicial trustee
as may, in the opinion of the court, be necessary or expedient for
carrying this rule into effect, and for securing the safety of the
trust property.

(8) Where an official of the court is judicial trustee, the court
may direct that, instead of a separate account of the receipts and
payments on behalf of the trust being kept at some bank approved
by the court, all receipts on behalf of the trust may be dealt with,
and all payments on behalf of the trust may be made, in such
manner, and subject to such regulations as to the accounts to be
kept of the receipts and payments and the procedure to be followed
in dealing therewith, as the Accountant General shall direct.

11. A judicial trustee shall pay all money coming into his
hands on account of his trust without delay to the trust account
at the bank, and if he keeps any such money in his hands for a
longer time than the court considers necessary, shall be liable to
pay interest upon it at such rate not exceeding five per cent
as the court may fix for the time during which the money remains
in his hands.

12. (1) A judicial trustee may at any time request the court
to give him directions as to the trust or its administration.

(2) The request shall be accompanied by a statement of the
facts with regard to which directions are required, and by the fee
required under these rules in respect of a communication from
the court with regard to the administration of the trust.

(3) The court may require the trustee or any other person
to attend at chambers if it appears that such an attendance is
necessary or convenient for the purpose of obtaining any informa-
tion or explanation required for properly giving directions, or for
the purpose of explaining the nature of the directions.

13. The court, if satisfied that there is no reasonable doubt
of any fact which affects the administration of a trust by a judicial
trustee, may give directions to the judicial trustee to act without
formal proof of the fact.

Accounts and Audit.

14. (1) The court shall give directions to a judicial trustee
as to the date to which the accounts of the trust are to be made
up in each year, and shall fix in each year the time after that
date within which the accounts are to be delivered to it for audit.

(2) The accounts shall in ordinary cases be audited by the
officer of the court, but the court, if it considers that the accounts
are likely to involve questions of difficulty, may refer them to a
professional accountant for report, and order the payment to him
of such amount in respect of his report as the court may fix.





15. (1) The accounts of any trust of which there is a judicial trustee,
with a note of any corrections made upon the audit, shall be filed as the
court directs.

(2) The judicial trustee shall send a copy of the accounts or, if the
court thinks fit. of a summary of the accounts, of the trust to such
beneficiaries or other persons as the court thinks proper.

(3) The court may, if it thinks fit, having regard to the nature of the
relation of the applicant to the trust, allow any person applying to
inspect the filed accounts so to inspect them on giving reasonable
notice to the officer of the court.

16. A judicial trustee shall, unless the court otherwise directs. be
allowed on the audit of his accounts deductions made on account of his
remuneration and allowances under these rules and also on account of
the fees paid by him under these rules, but shall not be allowed any
deduction on account of the expenses of professional assistance, or his
own work, or personal outlay, unless the court is satisfied that the
deduction is justified by the strict necessity of the case.

Remuneration and Allowances.

17. (1) Where a judicial trustee is to be remunerated, the
remuneration to be paid to him shall be fixed by the court and may be
altered by the court from time to time.

(2) In fixing the remuneration, regard shall be had to the duties
entailed upon the judicial trustee by the trust.

(3) The court may make, if it thinks fit, special allowances to judicial
trustees for the following matters, to be paid out of the trust property

(a)for the statement of trust property prepared by a judicial
trustee on his appointment, an allowance not exceeding one
hundred and seventy-five dollars;

(b)for realizing and re-investing trust property, where the
property is realized for the purpose of re-investment, an
allowance not exceeding one and a half per cent of the amount
realized and re-invested;

(c)for realizing or investing trust property in any other case. an
allowance not exceeding one per cent on the amount realized
or invested.

(4) The court may also in any year make a special allowance to a
judicial trustee, if satisfied that in that year more trouble has been
thrown upon the trustee by reason of exceptional circumstances than
would ordinarily be involved in the administration of the trust.

(5) Where a trustee is remunerated, any allowance under this rule
shall be paid in addition to the remuneration.





(6) Any remuneration or allowance payable to a judicial trustee
shall be paid or allowed to him at such times and in such manner as the
court directs.

18. Where an official of the court is appointed to be a judicial
trustee, any remuneration, allowances, or other payments payable to him
on account of his services as trustee shall be paid, accounted for, and
applied in such manner as the Accountant General directs.

19. (1) If the court is satisfied that a judicial trustee has failed to
comply with these rules, or with any direction of the court or officer of
the court made in accordance with these rules, or has otherwise
misconducted himself in relation to the trust, the court may order that
the whole or any part of the remuneration of the trustee be forfeited.

(2) This rule shall not affect any liability of the judicial trustee for
breach of trust or to be removed or suspended.

(3) A judicial trustee shall have an opportunity of being heard by
the court, before any order is made for the forfeiture of his remuneration
or any part of it.

Removal and Suspension of Judicial Trustee.

20. (1) The court may at any time, either without any application or
on the application of any person appearing to the court to be interested
in the trust, suspend a judicial trustee, if the court considers that it is
expedient to do so in the interests of the trust, and a judicial trustee
while suspended shall not have power to act as trustee.

(2) When a judicial trustee is suspended, the court shall cause
notice to be given to such of the persons appearing to the court to be
interested in the trust as the court directs, and also to the persons
having the custody of the trust property, and shall give any other
directions which appear necessary for securing the safety of the trust
property.

21. (1) The court may, either without any application or on the
application of any person appearing to the court to be interested in the
trust, remove a judicial trustee if the court considers that it is expedient
to do so in the interests of the trust.

(2) An application to remove a judicial trustee shall be made by
summons.

(3) A judicial trustee shall not be removed by the court without an
application for the purpose, except after notice has been given to him by
the court of the grounds on which it is proposed to remove him, and of
the time and place at which the matter will be heard.





(4) The court shall cause a copy of the notice to the trustee
to be sent to such of the persons appearing to the court to be
interested in the trust as the court directs, and the same procedure
shall be followed in the matter so far as possible as on a summons
to remove a judicial trustee.

22. Where an inquiry into the administration by a judicial
trustee of any trust, or into any dealing or transaction of a judicial
trustee is ordered, the inquiry shall, unless the court otherwise
directs, be conducted by the officer of the court, and he shall have
the same powers in relation thereto as he has in relation to any
other inquiry directed by the court.

Resignation and Discontinuance of Judicial Trustee.

23. (1) If a judicial trustee desires to be discharged from
his trust he shall give notice to the court, stating at the same time
what arrangements it is proposed to make with regard to the
appointment of a successor.
(2) The court shall give facilities for the appointment on a
proper application of an official of the court to be judicial trustee
in place of a judicial trustee who desires to be discharged, in cases
where no fit and proper person appears available for the office,
or where the court considers that such an appointment is conven-
ient or expedient in the interests of the trust.

24. (1) Where there is a judicial trustee of a trust, the court
may at any time, on the application made by summons of any
person appearing to the court to be interested in the trust, order
that there shall cease to be a judicial trustee of the trust, whether
the person who is judicial trustee continues as trustee or not.
(2) If the court is satisfied that all the persons appearing to
the court to be interested in the trust concur in an application
under this rule, the court shall accede to the application, and in
any case shall ascertain as far as may be the wishes of those
appearing to the court to be interested in the trust with regard
to the application.
(3) Where an order is made under this rule, the court shall
make all such orders as may be necessary for carrying it into effect,
and where in pursuance of any such order a new trustee is
appointed in the place of an official of the court, shall make all
such vesting or other orders and exercise all such other powers
as may be necessary for vesting the trust property in the new
trustee either as sole trustee or jointly with other trustees as the
case requires.

Special Trusts.

25. (1) Any person who is an executor or administrator may
be appointed a judicial trustee for the purpose of the collection





and distribution of the estate of a deceased person in the same manner
and subject to the same provisions as in the case of an ordinary trust.

(2) Where an administrator has given an administration bond, he
need not give security as a judicial trustee under these rules unless the
court directs that he is to do so.

26. (1) An official of the court shall not be appointed or act as
judicial trustee for any persons in their capacity as members or
debenture holders of, or being in any other relation to, any incorporated
or unincorporated company, or any club.

(2) Where the circumstances of any trust of which an official of the
court is a judicial trustee, or of which it is proposed to appoint an official
of the court to be a judicial trustee, involve the carrying on of any trade
or business, special intimation of the fact shall be given to the court
either by the judicial trustee or by the person making the application for
the appointment of the judicial trustee, as the case may be, and the court
shall specially consider the facts of the case with a view to determining
whether the official of the court should continue or be appointed as
judicial trustee, and whether any special condition should be made or
directions given with a view to ensuring the proper supervision of the
trade or business.

Exercise of the Powers of the Court.

27. For the purpose of these rules the officer of the court may
exercise any power which may be exercised by the court (including the
power of making an order for the appointment of a judicial trustee or
making any vesting order) and may perform any duty to be performed by
the court, and may hear and investigate any matter which may be heard
or investigated by the court, subject in any case to the right of any party
to bring any particular point before the judge.

28. (1) It shall not be necessary to take out a summons for any
purpose under these rules, except in cases where a summons is required
by these rules, or where the court directs a summons to be taken out.

(2) Where a judicial trustee desires to make any application or
request to the court, or to communicate with the court as to the
administration of his trust, he may do so by letter addressed to the
officer of the court without any further formality.

(3) The court may give any direction to a judicial trustee with
regard to the administration of his trust by letter signed by the officer of
the court, and addressed to the trustee without drawing up any order or
formal document.





(4) For the purposes of the attendance at chambers of the judicial
trustee or any other person connected with the trust for purposes
relating to the administration of the trust the officer of the court may
make such appointments as he thinks fit by letter without the service of
formal notices.

(5) Any document may be supplied for the use of the court by
leaving it with, or sending it by post to, the officer of the court.

29. (1) The fees mentioned in the schedule to these rules shall be
paid in respect of the matters therein mentioned.

(2) The fees paid by a judicial trustee may be deducted out of the
income of the trust property unless the court otherwise directs.

(3) Any fees payable under these rules may be remitted by post,
and may be so remitted in any manner except by means of postage
stamps or coin.

(4) All fees payable under these rules in the Supreme Court, shall.
except as provided by these rules, be subject to similar provisions as to
payment, account. and application as other fees payable in the Supreme
Court.

30. In these rules, the expression officer of the court' means the
Registrar of the Supreme Court.

31. Any notice required by these rules to be given or any summons
or other document required to be served may be given or served
personally or in such other manner as the court may direct.

SCHEDULE. [rule 29.1

FEES

The following fees shall be payable under these rules-

In respect of anything or matter for which a fee is
provided under the orders in force for the time being The fee so

with regard to Supreme Court fees .provided.
In respect of any communication from the court with
regard to the administration of the trust 4.00
For filing the statement of the trust property 10.00
for filing any alteration in the statement 6.00
For filing the accounts of the trust 6.00
For filing any other document relating to the trust 4.00
For auditing the accounts of the trust when audited by
the officer of the court, for every $1,000.00 or fraction
of 51,000.00 of the gross amount received as income of
the trust without deducting any payments 4.00

On the audit of the accounts of the trust where they are A fee equal

referred to a professional accountant for report to the

amount paid to
the accountant.

On inspection of filed accounts for each hour or part of
an hour occupied ............... 4.00
Not exceeding on one day ....... 10.00
G.N.A.176/53. Citation. Mode of making application. Service of summons. Statement to be supplied on application. Removal of restriction as to appointment of certain persons to be trustees. Power to make vesting or other order. Appointment of Registrar General. Statement of trust property. Security. Trust account at bank and custody of documents. Judicial trustee not to keep money in his hands. Directions to judicial trustees. Powers to dispense with formal evidence, Accounts and audit. Filing and inspection of accounts. Deductions allowed. Remuneration of judicial trustee. Application of remuneration of official of the court. Forfeiture of remuneration. Suspension of judicial trustee. Removal of judicial trustee. Inquiry into conduct of judicial trustee. Resignation of judicial trustee. Discontinuance of judicial trustee. Executors and administrators. Special trusts. Exercise of powers of court. Communications between judicial trustee and court. Fees. Schedule. Definition of 'officer of the court'. Service.

G.N.A.176/53. Citation. Mode of making application. Service of summons. Statement to be supplied on application. Removal of restriction as to appointment of certain persons to be trustees. Power to make vesting or other order. Appointment of Registrar General. Statement of trust property. Security. Trust account at bank and custody of documents. Judicial trustee not to keep money in his hands. Directions to judicial trustees. Powers to dispense with formal evidence, Accounts and audit. Filing and inspection of accounts. Deductions allowed. Remuneration of judicial trustee. Application of remuneration of official of the court. Forfeiture of remuneration. Suspension of judicial trustee. Removal of judicial trustee. Inquiry into conduct of judicial trustee. Resignation of judicial trustee. Discontinuance of judicial trustee. Executors and administrators. Special trusts. Exercise of powers of court. Communications between judicial trustee and court. Fees. Schedule. Definition of 'officer of the court'. Service.

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