Part 1Trusts
Chapter 2Decision-making by trustees
I114Making of decision
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.