Power of Trustee of Charitable and Religious Trust :
Trustees of charitable and religious trusts play a vital role in managing the affairs of the trust and ensuring that its objectives are met. The trustee is responsible for managing the trust’s assets, investing its funds, and making decisions that promote the trust’s objectives.
Here are some of the Responsibilities and Power of Trustees of Charitable and Religious trusts:
1. Management of Trust Assets:
The trustee has the power to manage and control the assets of the trust. This includes the power to invest the trust’s funds, acquire or dispose of property, and make other financial decisions on behalf of the trust.
2. Distribution of Income:
The trustee is responsible for distributing the income of the trust to the beneficiaries or for the charitable or religious purposes specified in the trust deed.
3. Compliance with Legal and Regulatory Requirements:
The trustee must ensure that the trust complies with all legal and regulatory requirements, including filing annual returns, maintaining proper accounts, and obtaining necessary approvals and registrations.
4. Appointment of Agents and Advisors:
The trustee has the power to appoint agents and advisors to assist with the management of the trust. This may include lawyers, accountants, investment managers, and other professionals.
5. Amendment of Trust Deed:
The trustee may have the power to amend the trust deed, subject to the terms and conditions specified in the deed and the relevant laws and regulations.
6. To apply the Trust monies to effectuate one object or some of the objects of the Trust in preference to the other objects.
7. To discontinue the application of Trust Funds to the object and divert the funds to another object.
8. To decide the nature and functions of the institutions to be established by the Trust and to decide whether and if so what existing institution or institutions may be taken over by the Trust or to which any aid may be given.
9. In case it is decided to render financial or other aid to any person or institution to decide what terms and conditions should be complied by such person or institution.
10. To determine the terms and conditions on which any donations, subscriptions, scholarships or prizes are to be given by the Trust.
11. To expend the funds of the Trust in such manner as they shall consider most beneficial for the purpose of the Trust.
12. To acquire, build upon, pull down, rebuild, add to, alter, repair, improve, sell or dispose of any land, building or premises for the use of the Trust and to acquire any movable property required for the use of the Trust and to dispose of the same.
13. To acquire any property in exchange for some other property or partly in such exchange and partly for other consideration.
14. To enter into any contracts on behalf of the Trust.
15. To borrow any money upon the security of any of the property of the Trust and to grant mortgages for securing the same or without any security and upon such terms and conditions the Trustees may deem fit.
16. To make and from time to time repeal and/or alter regulations.
(i) As to the management of the Trust and the affairs thereof.
(ii) As to the duties and remuneration of any officer or servants of the Trust.
(iii) As to the conduct or any of the matters or things within the powers or under the control of the Trustees provided that the same shall not be inconsistent with the provisions contained in these presents.
17. To settle out of court, compromise or compound all suits, actions and other proceedings and all differences and demands and to refer all or any of such differences or demand to arbitration and to execute releases and to settle and approve all accounts without being answerable for any loss occasioned thereby.
18. To appoint and dismiss Managers, Secretaries, Clerks and other staff and workers required for working of its business or industry and for general management of the affairs of the Trust
19. To make changes in the object of the Trust which are consistent with the attainment of the main object.
It is important for trustees of charitable and religious trusts to act in the best interests of the trust and its beneficiaries. Trustees are held to a high standard of care and must act with prudence and diligence in managing the affairs of the trust. In addition, trustees may be personally liable for any losses incurred as a result of their actions or decisions, so it is important for them to seek professional advice and guidance as needed.
