Non apearnace of trustees for trust deed amendments
Vijaya Bhaskar
(Querist) 27 November 2024
This query is : Resolved
Dear Sirs
The Trust is constituted of seven trustees, three of whom are family members. There have been financial irregularities involving these three family members, including their failure to regularly attend board meetings. Currently, the four active trustees, who form the quorum, are considering amendments to the trust deed to address certain anomalies. However, the three reluctant trustees are not willing to attend the meetings or the registration process, nor are they likely to give a Power of Attorney. The agenda has been sent to them via registered AD, but they have not responded positively.
Given this situation, how can the remaining trustees proceed with the amendments? Can the four active trustees register the amendments without the presence or consent of the three reluctant trustees?
T. Kalaiselvan, Advocate
(Expert) 28 November 2024
In the trust deed where there is no mention about amendment, the amendment has to be done with the permission of a civil court. Even the Civil Courts do not have unlimited powers of amendment. The Civil Courts permit amendment under the doctrine of Cypres, which means the original intent of the settlor should prevail.
The trustees have been given power to amend, alter, change or modify the provisions of the trust deed with a condition mentioned therein vide clause 18 and 19.
You may peruse the trust deed for further guidance in this regard
kavksatyanarayana
(Expert) 28 November 2024
Who is/are the founder/s among the seven trustees or no such founder? If there are only 7 trustees who is the managing trustee from the three family members or the other 4 trustees? The other 4 trustees out of the 7 trustees can amend the necessary clauses with the permission of the
Commissioner of charities.
Vijaya Bhaskar
(Querist) 29 November 2024
The amendment clause is there in the trust deed. The said trust is not registered under the Bombay Public Trust Act. In Karnataka so far there is no Act regulating the Public Charitable Trust. In the above case, all are founding trustees. The Managing trustee is from the four trustees, whereas the secretary and treasurer are from the family trustees. The term of all the trustees is only one year eligible for re-election. 2/3 of the members form the quorum that is four, Since the quorum is present the amendments shall be approved by the four trustees, the concern is, whether the remaining three trustees' presence is mandatory at the time of registering the amendments, or after giving sufficient notice to the three members to be present for registration and yet they fail to be present can we go ahead and register the amendments. please suggest.
Dr. J C Vashista
(Expert) 30 November 2024
Is there any covenent in the Trust Deed qua amendment, if any ?
