38Additional or substitute co-trustee

#### 38 Additional or substitute co-trustee 38 Additional or substitute co-trustee > > (1) An individual who is appointed to act as trustee of trust funds under pre-paid contracts in substitution for one of the members of a group of individuals that is a pre-paid funeral fund or in addition to the members of the group shall not act as such a trustee until his or her appointment is confirmed by the Secretary. > > > > Maximum penalty—20 penalty units. > > > > Maximum daily penalty: 2 penalty units. > > > (2) The Secretary shall refuse to confirm the appointment of an individual under subsection (1) if the Secretary is satisfied that any group of individuals which included that individual would not be registered under section 37. > > > (3) Where the Secretary confirms the appointment of an individual to act as trustee of trust funds under pre-paid contracts in substitution for one of the members of a group of individuals that is a pre-paid funeral fund or in addition to the members of the group, the individual and the remaining members of the group or, as the case may be, the members of the group shall be deemed to be registered under section 37 as a group. > > > (4) Where one or more members of a group of individuals that is a pre-paid funeral fund ceases to be a trustee of trust funds under pre-paid contracts, the remaining members of the group shall, subject to section 39 (1) (b) (iv), be deemed to be registered under section 37 as a group. > > **s 38:** Am 1992 No 112, Sch 1.