sec.20Appointment of trustees—replacement of trustee in particular circumstances

sec.20 Appointment of trustees—replacement of trustee in particular circumstances

This section applies if a trustee of a trust (a relevant trustee )— is dead; or declares, by instrument, that the trustee wishes to be discharged from all or part of the trusts reposed in the trustee; or refuses to act as trustee; or is unfit to act as trustee; or is incapable of acting as trustee, including, for example, because of having impaired capacity for administering the trust; or becomes an insolvent under administration; or is disqualified from managing corporations under the Corporations Act , part 2D.6 and either— does not have permission under section 206GAB or 206G of that Act to manage all corporations; or has permission under section 206GAB or 206G of that Act to manage all corporations, but the permission is subject to exceptions or conditions; or is a corporation that— stops carrying on business; or becomes a Chapter 5 body corporate; or is deregistered or otherwise ceases to exist; or is removed under the trust instrument. For subsection (1) , it does not matter whether the relevant trustee is an original trustee of the trust or was appointed by the court or otherwise. The following persons may, by instrument, appoint 1 or more persons as trustees to replace the relevant trustee— if there is an appointor for the trust—the appointor; if there is no appointor for the trust, or no appointor who is able and willing to act as an appointor—the continuing trustee of the trust or, if there is more than 1 continuing trustee, the continuing trustees. See section 14 in relation to the limit applying to the number of trustees of particular trusts. See also section 166 in relation to the court’s power to appoint and remove trustees. Subject to a contrary intention in the trust instrument, an appointor for the trust may appoint themself as a trustee under subsection (3) (a) . In this section— continuing trustee includes a relevant trustee mentioned in subsection (1) (b) or (c) who is willing to act under subsection (3) (b) . (sec.20-ssec.1) This section applies if a trustee of a trust (a relevant trustee )— is dead; or declares, by instrument, that the trustee wishes to be discharged from all or part of the trusts reposed in the trustee; or refuses to act as trustee; or is unfit to act as trustee; or is incapable of acting as trustee, including, for example, because of having impaired capacity for administering the trust; or becomes an insolvent under administration; or is disqualified from managing corporations under the Corporations Act , part 2D.6 and either— does not have permission under section 206GAB or 206G of that Act to manage all corporations; or has permission under section 206GAB or 206G of that Act to manage all corporations, but the permission is subject to exceptions or conditions; or is a corporation that— stops carrying on business; or becomes a Chapter 5 body corporate; or is deregistered or otherwise ceases to exist; or is removed under the trust instrument. (sec.20-ssec.2) For subsection (1) , it does not matter whether the relevant trustee is an original trustee of the trust or was appointed by the court or otherwise. (sec.20-ssec.3) The following persons may, by instrument, appoint 1 or more persons as trustees to replace the relevant trustee— if there is an appointor for the trust—the appointor; if there is no appointor for the trust, or no appointor who is able and willing to act as an appointor—the continuing trustee of the trust or, if there is more than 1 continuing trustee, the continuing trustees. See section 14 in relation to the limit applying to the number of trustees of particular trusts. See also section 166 in relation to the court’s power to appoint and remove trustees. (sec.20-ssec.4) Subject to a contrary intention in the trust instrument, an appointor for the trust may appoint themself as a trustee under subsection (3) (a) . (sec.20-ssec.5) In this section— continuing trustee includes a relevant trustee mentioned in subsection (1) (b) or (c) who is willing to act under subsection (3) (b) .