Trust

SriBatsh Madodary (Querist) 17 June 2021 This query is : Resolved
Dear sir
wheather a registered public charitable Trust can be merged to a Newly created similiar Trust with enhanced number of Trustees.

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A registered public charitable trust can potentially be merged with a newly created similar trust, even with an increased number of trustees. This process generally requires a two-thirds majority vote from the trustees of both trusts and may need to be filed with relevant authorities. While there's no single central act, individual states have their own trust laws, such as the Bombay Public Trusts Act, which allows for amalgamation under specific conditions. Legal precedent suggests that merging trusts is permissible if their objectives remain unchanged and there are no disputes.

kavksatyanarayana (Expert) 17 June 2021
It can be merged with the 2/3rds majority of the trustees of both Trusts and it shall be filed wherever necessary. so consult a local senior CA or an advocate having knowledge in Trust subject.

T. Kalaiselvan, Advocate (Expert) 19 June 2021
There is no central Act that governs trusts, but each State has enacted its own Act that governs trusts. Section 50A(2) of the Bombay Public Trusts Act allows two or more public trusts to be amalgamated or merged into one single legal entity by framing a common scheme of management or administration.
In a similar case before Income Tax Appellate Tribunal - Mumbai
Ramhari Foundation, Mumbai vs Assessee on 26 July, 2011, it was held that amalgamation of two trusts, if there were no changes in their objects, and there is no dispute between both the trusts then ther is no legal infirmity in it.

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