INTERNATIONAL TRUSTS ACT, 1994 (Act 26 of 1994)

PART X

POWERS OF THE COURT

59. (1) Where at any stage of an international trust there is no trustee resident in Seychelles, a person interested may apply to the court for the appointment of a person, resident in Seychelles and nominated in the application, as a trustee.

(2) The court -

(a) on being satisfied that notice of the application has been served on t he existing trustees;

(b) after hearing any representations that any person interested in the trust may have made, and

(c) having ascertained that the person nominated is qualified and willing to act,

may appoint that person as a trustee.

60. The court may relieve a trustee wholly or partly of liability for a breach of trust, where it appears to the court that the trustee -

(a) has acted honestly and reasonably; and

(b) ought fairly to be excused -

(i) for the breach of trust;

(ii) for omitting to obtain the directions of the court in the matter in which the breach arose.

61. Where a trustee commits a breach of trust at the instigation, or the request or with the concurrence of a beneficiary, the court, whether or not the beneficiary is a minor or a person under legal disability, may order -

(a) the defaulting beneficiary to indemnify t he trustee in respect of the consequences of the breach of trust; and

(b) the trustee to appropriate any part of the interest accruing to the beneficiary for that purpose.

62. (1) The court, on the application of any person interested on behalf of -

(a) a minor or a person under legal disability having directly or indirectly, an interest, vested or contingent, under an international trust;

(b) any person unborn;

(c) any person, ascertained or not, who may become entitled, directly or indirectly, to an interest under an international trust, as being (at a future date or on the happening of a future event) a person of any specified description or a member of any specified class; or

(d) any person, in respect of an interest that may accrue to the person by virtue of the exercise of a discretionary power on the failure or determination of an existing interest, may, subject to subsection (2), approve any arrangement which varies or revokes the terms of an international trust or enlarges or modifies the powers of management or administration of any trustees, whether or not there is another person with a bene- ficial interest who is capable of assenting to the arrangement.

(2) The court shall not approve an arrangement on behalf of a person mentioned in subsection (1)(a), (b) or (c) unless t he arrangement appears to be for the person's benefit.

63. Where in the management or administration of an international trust a transaction is, in the opinion of the court, expedient, but cannot be effected because the necessary power is not vested in the trustees by the terms of the trust or by law, the court may, on the application of any person interested -

(a) confer upon the trustees, generally or in any particular circumstances, the necessary power, on such terms and subject to such conditions as the court thinks fit; and

(b) direct the manner in which, and the property from which, any monies authorised to be expended, and the costs of any transaction, are to be paid or borne.

64. Where trust property is held for a charitable purpose and -

(a) the purpose has been, as far as may be, fulfilled;

(b) the purpose cannot be carried out, or cannot be carried out according to the directions given and to the spirit of the gift;

(c) the purpose provides a use for part only of the property;

(d) the property, and other property applicable for a similar purpose, can be more effectively used in conjunction, and to that end can suitably, be applied to a common purpose, having regard to the spirit of the gift;

(e) the purpose was laid down by reference to an area which was then, but has since ceased to be, a unit for some other purpose, or by reference to a class of persons or to an area which has for any reason since ceased to be suitable, regard being had to the spirit of the gift, or to be practicable in administering the gift;

(f) the purpose has been adequately provided for by other means;

(g) the purpose has ceased to be charitable (by being useless or harmful to the community or otherwise); or

(h) the purpose has ceased in any other way to provide a suitable and effective method of using the property, regard being had to the spirit of the gift,

the property, or the remainder of the property, as the case may be, shall be held for such other charitable purpose as the court, on the application of the Attorney-General or the trustees, may declare to be consistent with the original intention of the settlor.

65. Where the trust property is held for a charitable or other purpose, the court, on the application of a person interested, may approve any arrangement which varies or revokes the purposes or terms of the trust or enlarges or modifies the powers of management or administration of the trustees, if it is satisfied that the arrangement is -

(a) suitable or expedient; and

(b) consistent with the original intention of the settlor and the spirit of the settlement.

66. The court shall not approve an arrangement under section 65 unless the court is satisfied that any person with a material interest in the trust has been, where practicable, notified of the application.