sec.25Powers of trustee in relation to securities

### sec.25 Powers of trustee in relation to securities If securities of a corporation are subject to a trust, the trustee may agree to a scheme or arrangement— for or arising out of the reconstruction, reduction of capital or liquidation of, or the issue of shares by, the corporation; or for the sale of all or part of the property and undertaking of the corporation to another corporation; or for the acquisition of securities of the corporation, or of control of the corporation, by another corporation; or for the amalgamation of the corporation with another corporation; or for the release, modification or variation of rights, privileges or liabilities attached to the securities, or any of them; in the same way as if the trustee were beneficially entitled to the securities. The trustee may accept instead of, or in exchange for, the securities subject to the trust, securities of any denomination or description of another corporation that is party to the scheme or arrangement. If a conditional or preferential right to subscribe for securities in a corporation is offered to a trustee for a holding in that corporation or another corporation, the trustee may, for all or any of the securities— exercise the right and apply capital money subject to the trust in payment of the consideration; or assign to any person, including a beneficiary under the trust, the benefit of the right, or the title to the right, for the best consideration that can be reasonably obtained; or renounce the right. A trustee accepting or subscribing for securities under this section is, for any provision of this part, exercising a power of investment. A trustee may retain securities accepted or subscribed for under this section for any period for which the trustee could properly have retained the original securities. The consideration for an assignment made under subsection (3) (b) must be held as capital of the trust. This section applies to securities whether acquired before or after the commencement of this section. s 25 amd 1997 No. 17 s 68 sub 1999 No. 69 s 5 (sec.25-ssec.1) If securities of a corporation are subject to a trust, the trustee may agree to a scheme or arrangement— for or arising out of the reconstruction, reduction of capital or liquidation of, or the issue of shares by, the corporation; or for the sale of all or part of the property and undertaking of the corporation to another corporation; or for the acquisition of securities of the corporation, or of control of the corporation, by another corporation; or for the amalgamation of the corporation with another corporation; or for the release, modification or variation of rights, privileges or liabilities attached to the securities, or any of them; in the same way as if the trustee were beneficially entitled to the securities. (sec.25-ssec.2) The trustee may accept instead of, or in exchange for, the securities subject to the trust, securities of any denomination or description of another corporation that is party to the scheme or arrangement. (sec.25-ssec.3) If a conditional or preferential right to subscribe for securities in a corporation is offered to a trustee for a holding in that corporation or another corporation, the trustee may, for all or any of the securities— exercise the right and apply capital money subject to the trust in payment of the consideration; or assign to any person, including a beneficiary under the trust, the benefit of the right, or the title to the right, for the best consideration that can be reasonably obtained; or renounce the right. (sec.25-ssec.4) A trustee accepting or subscribing for securities under this section is, for any provision of this part, exercising a power of investment. (sec.25-ssec.5) A trustee may retain securities accepted or subscribed for under this section for any period for which the trustee could properly have retained the original securities. (sec.25-ssec.6) The consideration for an assignment made under subsection (3) (b) must be held as capital of the trust. (sec.25-ssec.7) This section applies to securities whether acquired before or after the commencement of this section. - (a) for or arising out of the reconstruction, reduction of capital or liquidation of, or the issue of shares by, the corporation; or - (b) for the sale of all or part of the property and undertaking of the corporation to another corporation; or - (c) for the acquisition of securities of the corporation, or of control of the corporation, by another corporation; or - (d) for the amalgamation of the corporation with another corporation; or - (e) for the release, modification or variation of rights, privileges or liabilities attached to the securities, or any of them; - (a) exercise the right and apply capital money subject to the trust in payment of the consideration; or - (b) assign to any person, including a beneficiary under the trust, the benefit of the right, or the title to the right, for the best consideration that can be reasonably obtained; or - (c) renounce the right.