Appointment and removal of trustees
8.1This chapter addresses topics relating to the appointment and removal of trustees. The following specific issues are covered:
- acceptance or rejection of trusteeship;
- who may be appointed as a trustee;
- the discharge and replacement of a trustee, including grounds for removal, who may remove a trustee and appoint a replacement trustee, appointment of a replacement trustee when a trustee dies while in office, and the retirement of trustees;
- whether persons removing and appointing trustees should be subject to duties;
- whether trustees who are removed should always be replaced and whether the new Act should provide for a minimum number of trustees; and
- the transfer of trust property when a trustee is removed.
8.2 There are issues with the current law in these areas due to a lack of clarity in the existing statutory provisions or processes, or an outdated approach that no longer meets the needs of contemporary trust practice. Our recommendations seek to modernise the statutory provisions in these areas of trust administration, and to provide guiding principles and mechanisms for appointment and removal that are more robust. The new Act should also include the requirement that trustees be over the age of 18 years. The suite of recommendations has been designed to work together as an overall package. The reform options are discussed in detail in the Preferred Approach Paper and Fourth Issues Paper.