What it does
This short Act creates a corporate trustee and transfers a large body of Salvation Army property in New South Wales into that corporate trust. It incorporates “The Salvation Army (New South Wales) Property Trust” as a body corporate with perpetual succession and a common seal (s3). Property that was held in the name of William Bramwell Booth or other persons in trust for The Salvation Army in New South Wales vests automatically in the Trustees without conveyance or transfer, subject to existing reservations, mortgages, charges, encumbrances, liens, leases, special trusts, and any resulting trusts (s7). The Act also provides mechanics for future gifts and testamentary dispositions to the Salvation Army to vest in the Trustees (s18, s19).
Operational powers and governance rules are specified. The General of The Salvation Army, or his authorised attorney as defined in the Act, appoints between five and seven trustees in writing (s2, s4). The Trustees hold and may manage, mortgage, sell, lease, transfer, and otherwise deal with the real and personal property vested in them, and may sue and be sued in their corporate name (s3, s8, s10, s11). Three trustees constitute a quorum and any deed or instrument executed by any three members in pursuance of a resolution and under the common seal is as effective as if done by all (s5, s6).
Third-party dealing is facilitated by several statutory protections. Persons dealing with the Trustees are not bound to inquire into the propriety or necessity of the Trustees’ dealings, and purchasers and mortgagees are exonerated where they rely on a written receipt of a majority of Trustees or authorised persons (s9, s12, s19). The Trustees must keep minutes and a register of all lands and indicate which lands are for “general purposes” and which are for the “Social Work” of The Salvation Army; those records must be open for inspection by the General (s14). Lands held for the Social Work are ring-fenced for that purpose and proceeds of sale must be devoted to Social Work (s10, s13).