Firdaus
06 April 2012 at 22:19
As per the clauses in our Family Trust, it is only the existing Trustees who can appoint another Trustee.
The existing Trustees appointed a family member as a trustee by passing a resolution. However, the formal induction of the said family member as a trustee by registering a supplementary deed of indenture is pending since more than 3 years.
Queries :
(a) Without registration of the formal supplementary deed of indenture inducting the said person as a trustee, can the new trustee's name be added as a joint signatory to the Trust's bank accounts ?
(b) Is such a Trustee authorised to sign any documents in the capacity of a Trustee ?
(c) Can such a Trustee be held liable for any acts of the other Trustees which have resulted in a loss to the trust ?
(d) Is there any time limit prescribed by law (law of limitations for e.g.) in accordance with which such an appointment becomes void if not formalised ?
Firdaus
06 April 2012 at 21:33
I am one of the beneficiaries of a 125 year old family trust wherein the shares are determinate. The Trust possesses salt lands and agricultural lands. The Trust recently received an offer for its lands and a meeting of the family members was called to discuss the offer.
The Trustees presented the following facts at the family meeting :
(a) That they had received an offer for all the lands on as is where is basis of Rs. X.
(b) That they were all 75 + in age and as there was no one from the family who was interested in taking interest in the Trust matters, it was best that the lands be sold and the Trust wound up after distribution of sale proceeds to the beneficiaries.
(c) That the Trust did not have in it's possession the original title documents to the lands and the buyer was offering to buy despite that fact.
(d) That there was fear of encroachment by land mafia and even the govt was claiming that the salt lands are govt. lands and not the Trust's lands although the same were received by our forefather through a "grant" by the British government in lieu of "good services" to the crown.
(e) That there were many old beneficiaries who were in dire need of money and sale of the lands would help them financially in their hour of need.
One of the Trustees (who is the only young trustee) differed with the other Trustees at the meeting and said, that the Trust is the absolute owner of the lands. The dissenting Trustee asked for some time to search for title documents. A few beneficiaries also objected to the very low offer and it was finally resolved to give 4 months time to see if a better offer could be procured.
During the following months, the dissenting young trustee and these few beneficiaries who had raised the objection to the low offer, uncovered the following :
(a) They found the title documents to the agricultural lands from the house of the managing trustee (who maintained all the records).
(b) They also found that the managing trustee had given permission to a private electrical contractor to lay high tension line through the salt lands to supply electricity to a private mall without taking any consideration or signing any agreement. It surely appears that some consideration has passed under the table for such an act to happen. Upon inquiring why this was done...when such an act could put serious construction limitations resulting in procurement of lower market value for the lands, the said managing trustee had no answer.
(c) In a meeting with the buyer who had given the "low" offer to the Trust, we learnt that the original offer was not for Rs. X as told by the Managing Trustee to the family at the meeting but was for an amount which was 20% higher !!! When this was stated, neither the managing trustee nor the other two older aged trustees objected to the figure. This has brought the integrity of the managing trustee into question.
(d)There were a couple of other issues wherein the managing trustee together with the other trustees were found responsible for lack of application of mind and lack of action resulting in loss of crores of rupees.
(d) To undo one of their mistakes, the managing trustee has recently withdrawn monies from the Trust's bank account and is now trying to cook up the books by showing fake expenses to hide the true nature of the said payment.
The Trust deed clearly provides that the Trustee will be held personally responsible for any act that jeopardises the Trust or its properties.
Now, the managing trustee knows that some of us know of the blunders committed by him (some of which are of questionable integrity) and with the intention of saving his face, is seeking an opinion from a legal expert on whether a beneficiary can sell his "beneficial interest" to an outsider. His intention of doing this is to sell off his beneficial interest and let the other family members fend for themselves with an outsider (builder). Having an outsider would seriously impact the chances of the other beneficiaries ever getting a rightful share of the family property which was settled for the benefit of the family by our forefathers.
My questions to your expert panel are as follows :
(1) What recourse does a beneficiary have to demand resignation of such Trustee(s) ?
(2) Is a beneficiary by law, entitled to sell his beneficial interest in a family trust which was settled by the "settlors" with the intention of generating income for the benefit of the family ?
(3) Can an outsider who buys such a "beneficial" interest from a beneficiary, seek appointment as a trustee ?
I hope you can give me an answer quickly as time is running out. The legal opinion sought is likely to come within 10 days and if it states that "beneficial" interest can be sold, it will leave the other beneficiaries high and dry or with no choice but to toe the line of the unethical trustee and sell out ancestral property worth crores of rupees for a pittance !
mukesh Gupta
14 February 2012 at 19:36
Sir(s),
One of my friends father applied for shares of a company's IPO. But he was not allotted the shares. The application money was also not refunded and correspondences were going on. Meanwhile unfortunately father died. Now the my friend along with his mother wants to file a consumer case. Can they file the case. One of their friend advise them to file a civil suit as they do not fall in the definition of consumer.
please advice in the matter.
Thanks.
dinesh kumar
20 January 2012 at 22:30
RESPECTED SIR
I AND MY WIFE HAVE SEPERATE RETURN IN INCOME TAX.I AM GOVT.EMPLOYEE WHEREAS MY WIFE HAS INCOME FROM SALES OR OTHER INCOME.I HAVE MAKE AN AGREEMENT TO PURCHASE A COMMERCIAL PROPERTIES FROM MY ACCOUNT IN THE NAME OF WIFE.NOW I WANT TO MAKE IT IN HER NAME FROM HER INCOME SO THAT RENTAL INCOME DOESNOT INCLUDE IN MY INCOME.HOW IT POSSIBLE?AGREEMENT WAS MADE IN 2009.
Mayank
20 January 2012 at 20:07
Hi Lawyers
I am a proprietor of a firm in mumbai and want to open a new proprietory firm.
is it possible ?
will it be benefit me in any way ?
i was told that i should first close the first firm and then start a new one ...is that so?
or shall i start a firm on my wife's name and work as an employee there?
pls help
mayank
Sabir F. Mulla
21 November 2011 at 18:06
Dear Sir,
We have issued cheque of Rs.50 Lakhs in favour of SBI to issue Demand Draft in favour of M/s XYZ corporation for statutory payment in Dec-2004. Now M/s XYZ corporation is saying they have not received any Demand Draft. Also we are not able to trace anything which can establish that we have given Demand Draft to M/s XYZ corporation. We have requested SBI to give us the clearance details of Demand Draft but SBI is saying since the matter is old it will take time to get the details. Here I have following questions in my mind??
Suppose if Demand Draft is not presented for payment, how SBI will manage unclaimed amount of Demand Draft??
If Demand Draft is not presented for payment till date, will SBI be liable to re-issue the same with interest??
Is there any guideline of RBI or any statutory law available for Bank available to manage unclaimed fund??
Please explain my above questions as early as possible, it will be of great helpful to me.
Kind Regards,
Sabir Mulla
SUPRIYA
18 November 2011 at 18:54
Dear Sir I am planning to give my house portion for leave and Licence for 11 months in Sindhudurg ,Dist Maharashtra . Is Registration is required ?
supriya
Ashok
18 November 2011 at 01:19
Dear Sir,
A public Religious trust ( Mumbai) registered under BPT 1950, was formed 16 yrs ago. It is not registered under u/s 12 A & 80G of Income Tax Act 1956.
It has been maintaining accounts but the books of accounts are not audited & also not filed its Annual Report to the BPT office.
Trust conducts Religious Programme (pooja) partly by donation received for others and partly by mutual Contribution.
Hence the Question of profit does not arise.
Now My Question is
1) Are the Required to get their cooks audited. (it has never been audited since formation) ?
2) Do they have to submit the Annual report to IT or BPT ?
3) Consequences of non-filing of Annual report to IT or BPT till date.
Please Reply
Regards
Ashok vishwakarma
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Query on fcra foreign contribution (regulation)act 2010
Respected senior / expert members of the forum
My client is a church base NGO ( Nan governmental organization) they have 3 FCRA account , Deputy Secretary Govt. of India Ministry of Home affairs hereby prohibits, is one FCRA account by order, thought the Section 9 of Contribution (Regulation)act 2010, Could they use other two FCRA account for receiving the grant amount from donor agency, if yes under which section or rule/act or any notification by government . please guide me how can the receive grant . Alternatively, you may give your feedback to me on skhoware@yahoo.co.in or my cell 09422816019
Thank you very much
With Regards
Advocate
S.L.Khoware
Nagpur