Amalgamation of trusts

Querist : Anonymous (Querist) 04 July 2024 This query is : Resolved
We have a public trust that's unregistered. A property is attached with that trust. The trustees are old. So We are going to form new trust with same objectives. Is it possible to merge the old trust with new one? Will the property automatically tranfered into new trust?.

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This discussion explores the possibility of amalgamating an unregistered public trust with a new trust sharing the same objectives, particularly when the original trustees are elderly. It clarifies that while a direct automatic transfer of property isn't guaranteed, a formal process involving trustee meetings, asset and liability transfer resolutions, and crucially, permission from the Charity Commissioner and Income Tax Commissioner, is required. The Charity Commissioner has the authority to initiate or approve schemes for amalgamating trusts for better management.

T. Kalaiselvan, Advocate (Expert) 04 July 2024
Where the Charity Commissioner is of opinion that in the interest of the proper management or administration, two or more public trusts may be amalgamated by framing a common scheme for the same, he may, after - (a) publishing a notice in the official Gazette and also if necessary in any newspaper which in the ...

The Charity Commissioner to frame, amalgamate or modify a scheme for the proper management of a Public Trust. Under sub-section (1) he could initiate proceedings for the proper management or administration of a public Trust and to frame and settle a scheme. He has two options either to initiate proceedings sub motu or when two or more persons having interest in the Public Trust make an application before him, in writing, in the prescribed manner
A procedural law is always in aid of justice, not in
contradiction or to defeat the very object which is sought
to be achieved. A procedural law is always subservient to the substantive law. Nothing can be given by a procedural law what is not sought to be given by a substantive law and nothing can be taken away be the procedural law what is given by the substantive law.

kavksatyanarayana (Expert) 04 July 2024
The trustees of the old trust shall convene a meeting to transfer its assets and liabilities to another Trust having the same aims/objects with a majority and the trustees of the new trust shall also convene a meeting to hand over the assets and liabilities of the old trust with a majority. The trustees of old and new shall obtain permission from the Commissioner of Endowments/Charity and the Commissioner of Income Tax of your district.

P. Venu (Expert) 23 July 2024
"We have a public trust that's unregistered". Is it the case that the functioning of the trust is beyond the purview of any of the public authorities?

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