INTERNATIONAL TRUSTS ACT, 1994 (Act 26 of 1994)

PART XI

MISCELLANEOUS PROVISIONS

67. A trustee may apply to the court for directions as to how the trustee should or might act in any of the affairs of the international trust, and t he court may make such order as it thinks fit.

68.(1) On the application of any person interested, the court may -

(a) make an order in respect of -

(i) the execution, administration or enforce- ment of an international trust;

(ii) a trustee, including an order as to the exercise of any functions of the trustee, the appointment or the removal of a trustee, the remuneration or conduct of a trustee, the keeping and submission of accounts, and the making of payments whether into court or otherwise;

(iii) a beneficiary, or any other person connected with an international trust;

(iv) any trust property, including an order as to the vesting, preservation, application, surrender or recovery thereof;

(b) make a declaration as to the validity or enforceable of a trust;

(c) rescind or vary an order or declaration under this Act, or make a new or further order or declaration.

(2) Where the court appoints or removes a trustee under this section -

(a) it may impose such requirements and conditions as it thinks fit, including requirements and conditions as to the vesting of trust property;

(b) subject to the court's order, a trustee appointed by the court shall have the same functions, and may act in all respects, as if the trustee had been originally appointed a trustee.

69. Where a person does not comply with an order of the court under this Act requiring the person to do any thing, the court may, without prejudice to any action for contempt of court, order on such terms and conditions as it thinks fit, that the thing be done by another person, nominated for the purpose by the court, at the expense of the person in default (or otherwise, as the court directs), and a thing so done shall have effect in all respects as if done by the person in default.

70. The court may order the costs and expenses of, and incidental to, an application to the court under this Act to be paid from the trust property or in such other manner and by such persons as it thinks fit.

71. (1) Subject to subsection (2) -

(a) the interest of a trustee in the trust property is limited to that which is necessary for the proper performance of the trust; and

(b) the trust property does not form part of the trustee's estate.

(2) Where a trustee of a trust is also a beneficiary thereof, subsection (1) does not apply to the trustee's interest as a beneficiary.

72. Without prejudice to the personal liability of a trustee, trust property which has been charged or dealt with in breach of trust, or the property into which the trust property has been converted, may be followed and recovered unless -

(a) it is no longer identifiable;

(b) it is in the hands of a bona fide purchaser for value without notice of the breach of trust or of any other defect in the title;

(c) it has been charged in favour of a person who bona fide acquired rights therein for value and without notice of the breach of trust or of any other defect in the title;

(d) a person, other than the trustee, derived title therein through a bona fide purchaser or chargeholder for value without notice of the breach of trust or the defect.

73. Where a trustee becomes bankrupt or upon the property of a trustee becoming liable to arrest, seizure, forfeiture, expropriation or similar process of law, the trustee's creditors shall have no recourse against the trust property except to the extent that the trustee has a claim against or a beneficial interest in the trust property.

74. (1) A bona fide purchaser for value without notice of a breach of trust -

(a) may deal with a trustee in relation to the trust property as if the trustee were the beneficial owner of the property; and

(b) is not affected by the trust on which the property is held.

(2) A person paying or advancing money to a trustee is not concerned to see -

(a) that the money is wanted;

(b) that no more than is wanted is raised; or

(c) that the transaction or the application of the money is proper.

75. (1) On appointment, a resident trustee of an international trust shall submit to the Authority -

(a) a declaration that -

(i) the settlor of the trust is not a resident of Seychelles;

(ii) the trust property does not include any immovable property situated in Seychelles;

(iii) the trust the trustee holds qualifies as an international trust.

(b) the prescribed fees.

(2) The Authority shall -

(a) file the declaration in a Register of International Trusts;

(b) give the declaration a reference number;

(c) notify the resident trustee of the registration of the declaration and of the registration number, and

(3) The registration number of a declaration of trust under this section of an international trust shall be the reference by which the international trust shall be identified and may be used officially to refer to the international trust.

76. A declaration of trust shall not contain any mention of -

(a) the name of the settlor;

(b) the name of the beneficiary, unless the beneficiary is a Seychellois or a body corporate resident in Seychelles.

77. A resident trustee who -

(a) provides in a declaration of trust any false information, or information misleading in any material particular;

(b) fails to submit a declaration in respect of an international trust;

(c) knowingly declares that a trust qualifies as an international trust when it does not by reason of -

(i) the domicile of the settlor;

(ii) the location of the trust property,

is guilty of an offence and on conviction liable to a fine of R200,000 and to imprisonment for 10 years.

78. (1) The Authority for the purposes of this Act shall be -

(a) a person designated by the Minister by notice published in the Gazette; or

(b) a body corporate constituted under subsection (2).

(2) The Minister may by Order published in the Gazette constitute an Authority which shall be a body corporate consisting of such number of persons as may be specified in the Order.

(3) An order under subsection (2) may provide for the name, registered address, meetings, finance, staff, administration, management and any other matter necessary for carrying out the functions of the Authority.

(4) Where under subsection (1)(a) the Minister designates an individual as the Authority, the Minister shall provide the Authority with the necessary staff, office accommodation and other matter necessary for carrying out the functions of the Authority.

79. (1) Notwithstanding any other written law but subject to subsection (2), the period of limitation or prescription shall not apply to an action brought by a person interested against a trustee -

(a) in respect of any fraud to which the trustee was a party or was privy; or

(b) to recover from the trustee trust property or the proceeds thereof -

(i) held by or vested in the trustee or otherwise in the trustee's possession or under the trustee's control; or

(ii) previously received by the trustee and converted to the trustee's use.

(2) Subject to subsection (3), the period within which an action founded on breach of trust may be brought against a trustee by a beneficiary is -

(a) three years from delivery of the final accounts of the trust to the beneficiary; or

(b) three years from the date on which the beneficiary first has knowledge of the breach of trust,

whichever period first begins to run.

(3) Where the beneficiary is a minor or a person under legal disability, the period referred to in subsection (2) does not begin to run until the beneficiary's minority or disability, as the case may be, ceases.

80. (1) The Minister may make such regulations as the Minister thinks fit for the purposes of this Act.

(2) The regulations under subsection (1) may provide for fees and levying of charges.

(3) Where the Minister amends any regulations made under subsection (1) for the purposes of increasing any fees or charges, the increased fees or charges shall not have effect with respect to a trust in respect of which a declaration has been registered under section 75 at the time of the coming into force of the amendment.

Short title and commencement

Interpretation

Application of the Act

International Trust

Validity of international trust

Proper law of international trust

Jurisdiction of Court

Confidentiality

Avoidance of international trust

Forced heirship

Act 13 of 1975

Duration of international trust

Accumulation of income

Charitable international trust

Purpose international trust

Trust property

Creation of international trust

Beneficiaries of an international trust

Disclaimer of beneficial interest

Nature of beneficial interest

Enforcement of international trust

Effect of invalidity on property

New or additional trustees

Number of trustees

Acceptance by trustees

Resignation or removal

Fiduciary duties

Duty to preserve trust property

Duty to keep accounts

Duty not to profit

Duty to keep trust property separate

Duty to give information

Duty of co-trustees

Impartiality of trustees

Powers of trustees

Powers to sue

Consultation by trustees

Maximum period of delegation

Delegation by trustees

Remuneration of trustees

Non-disclosure by trustee

Body corporate acting as trustee

Power to appropriate

Liability for breach of trust

Saving from liability

Relief by beneficiary

Trustees of more than one trust

Dealings with third parties

Outgoing trustees

Constructive trusts

Protective trusts

Class interests

Power of variation

Accumulation and advancement

Power of appointment

Power of revocation

Permitted investments

Termination of international trust

Failure or lapse of interest

Appointment of resident trustee

Power to relieve trustee from liability

Power to make beneficiary indemnify

Variation of international trust

Approval of transactions

Special provisions on charitable international trust

General power to vary

Notification of person with material interest

Enforceability of foreign trust

General powers of Court

Application to Court

Payment of costs

Following trust property

in case of default

Nature of trustee's interest

Protection of person dealing with trustees

Bankruptcy of trustees

Declaration and its registration

Offence in relation to declaration

Particulars of Declaration

Authority

Limitation period for action against trustees

Regulations