sec.60Public trustee may direct audit of trusts

### sec.60 Public trustee may direct audit of trusts Any person may make a request in writing to the public trustee for an investigation and audit of the condition and accounts of a trust. If, in the public trustee’s opinion, the person’s interests are, or may be, adversely affected by the trust’s operation, the public trustee may serve a notice of such request on such trustees and beneficiaries other than the applicant as the public trustee thinks desirable and a person on whom such notice is served may make representations to the public trustee as to the desirability of the investigation and audit. After the expiration of 14 days from the date when the last of the notices under subsection (2) has been served and upon the payment to the public trustee by the person who has requested the investigation and audit of such sum (if any) as the public trustee shall order the person to pay as security for any costs and expenses of the investigation and audit, the public trustee may, if it appears to the public trustee desirable, appoint, by writing under the public trustee’s hand and seal, some person (the auditor ) to carry out an investigation and audit of the condition and accounts of the trust. The auditor— on production to any trustee of such writing evidencing the auditor’s appointment by the public trustee, shall have the right to inspect and to take possession of any books, accounts and documents relating to the trust and which are under the control of the trustees or any of them, and may require from any trustee such information and explanation as the auditor considers reasonably necessary for the performance of the auditor’s duties; and on production to any other person or body of such writing evidencing the auditor’s appointment by the public trustee, shall have the right to inspect and to take copies of all books, accounts and documents relating to the trust which are under the control of such person or body. Any person, unless lawfully excused (proof whereof shall lie on the person)— being a trustee, shall furnish to the auditor any information or explanation required by the person in accordance with subsection (4) ; and shall allow the auditor to inspect or take possession of or take copies of any book, account or document which the auditor has the right to inspect, take possession of or take copies of pursuant to subsection (4) ; and shall not in any way obstruct the carrying on of an investigation or audit pursuant to this section. Maximum penalty—10 penalty units. Daily penalty—2 penalty units. The auditor, on the completion of the investigation and audit, shall forward to the public trustee a report as to the condition and accounts of the trust, including the nature and state of investment of the trust assets, and the public trustee shall thereupon supply a copy of the report to the applicant and to every trustee. It is a lawful excuse for the publication of any defamatory statement made in a report by an auditor under subsection (6) that the publication is made in good faith and is made for the purposes of this section or purports to be so made. Every beneficiary under the trust shall be entitled at all reasonable times to inspect a copy of the report and, at the beneficiary’s own expense, to be furnished with a copy thereof or of extracts therefrom. The appointment of the auditor may be terminated by the public trustee, and, thereupon, or if an auditor resigns or dies before the investigation and audit is completed, a new auditor may be appointed in the auditor’s place by the public trustee. The remuneration of the auditor and the other expenses of the investigation and audit shall be such as may be prescribed and, if not prescribed, as the public trustee considers reasonable, and shall be payable out of the trust property unless the public trustee orders that they be paid by the person who has requested the investigation and audit, or by the trustees or any of them personally, or by any 2 or more of such persons, and in such proportions, as the public trustee directs, in any of which cases they shall be payable by such person or persons accordingly. A person aggrieved by any decision pursuant to subsection (10) may apply to the court and the court may make such order as appears just. A person who wilfully makes a statement which is false in any material particular in any information, explanation, statement of accounts, report or certificate required pursuant to this section shall be guilty of an offence. Maximum penalty— on indictment—10 penalty units or imprisonment for 2 years; or on summary conviction—5 penalty units or imprisonment for 6 months. The report forwarded by the auditor pursuant to subsection (6) shall be admissible in evidence in any proceedings relating to the trust. In this section— documents includes vouchers, correspondence, instruments of title and other papers. This section shall not apply to a trust of which a trustee company as defined by the Trustee Companies Act 1968 is a trustee. s 60 amd 1994 No. 24 s 3 (1) sch ; 1997 No. 9 s 55 (sec.60-ssec.1) Any person may make a request in writing to the public trustee for an investigation and audit of the condition and accounts of a trust. (sec.60-ssec.2) If, in the public trustee’s opinion, the person’s interests are, or may be, adversely affected by the trust’s operation, the public trustee may serve a notice of such request on such trustees and beneficiaries other than the applicant as the public trustee thinks desirable and a person on whom such notice is served may make representations to the public trustee as to the desirability of the investigation and audit. (sec.60-ssec.3) After the expiration of 14 days from the date when the last of the notices under subsection (2) has been served and upon the payment to the public trustee by the person who has requested the investigation and audit of such sum (if any) as the public trustee shall order the person to pay as security for any costs and expenses of the investigation and audit, the public trustee may, if it appears to the public trustee desirable, appoint, by writing under the public trustee’s hand and seal, some person (the auditor ) to carry out an investigation and audit of the condition and accounts of the trust. (sec.60-ssec.4) The auditor— on production to any trustee of such writing evidencing the auditor’s appointment by the public trustee, shall have the right to inspect and to take possession of any books, accounts and documents relating to the trust and which are under the control of the trustees or any of them, and may require from any trustee such information and explanation as the auditor considers reasonably necessary for the performance of the auditor’s duties; and on production to any other person or body of such writing evidencing the auditor’s appointment by the public trustee, shall have the right to inspect and to take copies of all books, accounts and documents relating to the trust which are under the control of such person or body. (sec.60-ssec.5) Any person, unless lawfully excused (proof whereof shall lie on the person)— being a trustee, shall furnish to the auditor any information or explanation required by the person in accordance with subsection (4) ; and shall allow the auditor to inspect or take possession of or take copies of any book, account or document which the auditor has the right to inspect, take possession of or take copies of pursuant to subsection (4) ; and shall not in any way obstruct the carrying on of an investigation or audit pursuant to this section. Maximum penalty—10 penalty units. Daily penalty—2 penalty units. (sec.60-ssec.6) The auditor, on the completion of the investigation and audit, shall forward to the public trustee a report as to the condition and accounts of the trust, including the nature and state of investment of the trust assets, and the public trustee shall thereupon supply a copy of the report to the applicant and to every trustee. (sec.60-ssec.7) It is a lawful excuse for the publication of any defamatory statement made in a report by an auditor under subsection (6) that the publication is made in good faith and is made for the purposes of this section or purports to be so made. (sec.60-ssec.8) Every beneficiary under the trust shall be entitled at all reasonable times to inspect a copy of the report and, at the beneficiary’s own expense, to be furnished with a copy thereof or of extracts therefrom. (sec.60-ssec.9) The appointment of the auditor may be terminated by the public trustee, and, thereupon, or if an auditor resigns or dies before the investigation and audit is completed, a new auditor may be appointed in the auditor’s place by the public trustee. (sec.60-ssec.10) The remuneration of the auditor and the other expenses of the investigation and audit shall be such as may be prescribed and, if not prescribed, as the public trustee considers reasonable, and shall be payable out of the trust property unless the public trustee orders that they be paid by the person who has requested the investigation and audit, or by the trustees or any of them personally, or by any 2 or more of such persons, and in such proportions, as the public trustee directs, in any of which cases they shall be payable by such person or persons accordingly. (sec.60-ssec.11) A person aggrieved by any decision pursuant to subsection (10) may apply to the court and the court may make such order as appears just. (sec.60-ssec.12) A person who wilfully makes a statement which is false in any material particular in any information, explanation, statement of accounts, report or certificate required pursuant to this section shall be guilty of an offence. Maximum penalty— on indictment—10 penalty units or imprisonment for 2 years; or on summary conviction—5 penalty units or imprisonment for 6 months. (sec.60-ssec.13) The report forwarded by the auditor pursuant to subsection (6) shall be admissible in evidence in any proceedings relating to the trust. (sec.60-ssec.14) In this section— documents includes vouchers, correspondence, instruments of title and other papers. (sec.60-ssec.15) This section shall not apply to a trust of which a trustee company as defined by the Trustee Companies Act 1968 is a trustee. - (a) on production to any trustee of such writing evidencing the auditor’s appointment by the public trustee, shall have the right to inspect and to take possession of any books, accounts and documents relating to the trust and which are under the control of the trustees or any of them, and may require from any trustee such information and explanation as the auditor considers reasonably necessary for the performance of the auditor’s duties; and - (b) on production to any other person or body of such writing evidencing the auditor’s appointment by the public trustee, shall have the right to inspect and to take copies of all books, accounts and documents relating to the trust which are under the control of such person or body. - (a) being a trustee, shall furnish to the auditor any information or explanation required by the person in accordance with subsection (4) ; and - (b) shall allow the auditor to inspect or take possession of or take copies of any book, account or document which the auditor has the right to inspect, take possession of or take copies of pursuant to subsection (4) ; and - (c) shall not in any way obstruct the carrying on of an investigation or audit pursuant to this section. - (a) on indictment—10 penalty units or imprisonment for 2 years; or - (b) on summary conviction—5 penalty units or imprisonment for 6 months.