Constitution of Trusts

Removal of Trustees

§15

Summary

(1) The State Government may remove from the Trust any Trustee, who- (a) refuses to act, or becomes incapable of acting or absents himself for more than three consecutive months from the meetings of the Trust or of any committee of which he is a member and is unable to explain such absence to the satisfaction of the Trust, or (b) is an undischarged insolvent or has compounded with his creditors, or (c) has been convicted by a criminal court of an offence involving moral turpitude, such conviction not having sub-sequently been set aside, or (d) has knowingly acquired or continued to hold without the permission in writing of the State Government, directly or indirectly or by a partner, any share or interest in any contract or employment with, by or on behalf of the Trust, or (e) has knowingly acted as a Trustee in a matter other than a matter referred to in clause (c) of sub-section (2) in which he or a partner had, directly or indirectly, a personal interest, or in which he was professionally interested on behalf of a client, principal or other person, or (f) has acted in contravention of section 23, or (g) being a legal practitioner, in any suit or other proceedings acts or appears on behalf of any other person against the Trust, or acts or appears on behalf of any other person in any criminal proceeding instituted by or on behalf of the Trust. (2) A person shall not be deemed for the purpose of sub-section (1) to acquire, or continue to have, any share or interest in a contract or employment by reason only of his- (a) having a share or interest in any lease, sale or purchase of land or building or in any agreement for the same provided that such share or interest was acquired before he became a Trustee, or (b) having a share or interest in a newspaper in which an advertisement relating to the affairs of the Trust is inserted, or (c) holding a debenture or otherwise being interested in a loan raised by or on behalf of the Trust, or (d) having a share or interest in the occasional sale of an article, in which he regularly trades, to the Trust to a value not exceeding, in any one year, such amount as the Trust, with the sanction of the State Government, may fix in this behalf. (3) The State Government may remove from the Trust a Trustee who in its opinion has so flagrantly abused in any manner his position as a Trustee as to render his continuance as a Trustee detrimental to the public interest. (4) When the State Government proposes to take action under the foregoing provisions of this section an opportunity of explanation shall be given to the Trustee concerned, and, when such action is taken, the reasons therefor shall be placed on record and communicated to him in writing.

(1) The State Government may remove from the Trust any Trustee, who- (a) refuses to act, or becomes incapable of acting or absents himself for more than three consecutive months from the meetings of the Trust or of any committee of which he is a member and is unable to explain such absence to the satisfaction of the Trust, or (b) is an undischarged insolvent or has compounded with his creditors, or (c) has been convicted by a criminal court of an offence involving moral turpitude, such conviction not having sub-sequently been set aside, or (d) has knowingly acquired or continued to hold without the permission in writing of the State Government, directly or indirectly or by a partner, any share or interest in any contract or employment with, by or on behalf of the Trust, or (e) has knowingly acted as a Trustee in a matter other than a matter referred to in clause (c) of sub-section (2) in which he or a partner had, directly or indirectly, a personal interest, or in which he was professionally interested on behalf of a client, principal or other person, or (f) has acted in contravention of section 23, or (g) being a legal practitioner, in any suit or other proceedings acts or appears on behalf of any other person against the Trust, or acts or appears on behalf of any other person in any criminal proceeding instituted by or on behalf of the Trust. (2) A person shall not be deemed for the purpose of sub-section (1) to acquire, or continue to have, any share or interest in a contract or employment by reason only of his- (a) having a share or interest in any lease, sale or purchase of land or building or in any agreement for the same provided that such share or interest was acquired before he became a Trustee, or (b) having a share or interest in a newspaper in which an advertisement relating to the affairs of the Trust is inserted, or (c) holding a debenture or otherwise being interested in a loan raised by or on behalf of the Trust, or (d) having a share or interest in the occasional sale of an article, in which he regularly trades, to the Trust to a value not exceeding, in any one year, such amount as the Trust, with the sanction of the State Government, may fix in this behalf. (3) The State Government may remove from the Trust a Trustee who in its opinion has so flagrantly abused in any manner his position as a Trustee as to render his continuance as a Trustee detrimental to the public interest. (4) When the State Government proposes to take action under the foregoing provisions of this section an opportunity of explanation shall be given to the Trustee concerned, and, when such action is taken, the reasons therefor shall be placed on record and communicated to him in writing.

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