Prospective
Chapter 2SDecision-making by trustees
13Decisions: preliminaryS
(1)This section applies in relation to any decision of the trustees which is to bind them.
(2)Except in so far as the trust deed, expressly or by implication, provides otherwise (or, in a case where there is no trust deed, the context requires or implies otherwise), in so far as is reasonably practicable a trustee—
(a)must receive adequate notice of the matter as regards which the decision is to be made, and
(b)must be afforded an opportunity (whether or not at a meeting of the trustees) to express an opinion in the matter before the decision is taken.
(3)But a decision which is invalid by virtue of non-compliance with subsection (2) may be homologated by the trustee in question.
(4)This section applies—
(a)irrespective of when the trust was created, but
(b)only as regards a decision taken after the section comes into force.
Commencement Information
I1S. 13 not in force at Royal Assent, see s. 88(3)
14Making of decisionS
(1)Except in so far as the trust deed, expressly or by implication, provides otherwise (or, in a case where there is no trust deed, the context requires or implies otherwise), a decision binds the trustees only if made by a majority of those for the time being able to make it.
(2)Except in so far as the trust deed, expressly or by implication, provides otherwise (or, in a case where there is no trust deed, the context requires or implies otherwise), for the purposes of subsection (1) a trustee is not to be regarded as able to make a decision who—
(a)has or might have a personal interest in the decision,
(b)is incapable, or
(c)is untraceable.
(3)But subsection (2)(a) is to be disregarded if (either or both)—
(a)all the beneficiaries know of the personal interest and consent to the trustee acting,
(b)the truster appointed the trustee in the knowledge that such a decision might require to be taken and that the trustee would have a personal interest in it (or must be taken to have appointed the trustee in that knowledge).
(4)For the purposes of subsection (2)(a), a trustee of a public trust is not to be regarded as having a personal interest in a decision insofar as—
(a)the decision is intended to benefit the public or a particular section of it, and
(b)the trustee in question may derive a benefit from the decision solely as a result of being a member of the public or, as the case may be, the particular section of it.
(5)In subsection (3)(a), the reference to beneficiaries is, in relation to any beneficiary who has not attained the age of 16 years or is incapable, to be construed as a reference to an appropriate person in relation to the beneficiary (see section 81(2)).
(6)This section applies—
(a)irrespective of when the trust was created, but
(b)only as regards a decision taken after the section comes into force.
Commencement Information
I2S. 14 not in force at Royal Assent, see s. 88(3)