sec.23Appointment of trustees—replacement of last continuing trustee who is insolvent under administration

sec.23 Appointment of trustees—replacement of last continuing trustee who is insolvent under administration

This section applies if all of the following apply— the last continuing trustee of a trust is an insolvent under administration; there is no appointor for the trust, or no appointor who is able and willing to act under section 20 to appoint a trustee to replace the last continuing trustee; if the trust instrument includes a mechanism, other than the appointment of an appointor, for appointing a trustee to replace the last continuing trustee—an appointment of a trustee under the mechanism has not taken effect within a reasonable period after the later of the following to happen to the last continuing trustee— becoming the last continuing trustee; becoming an insolvent under administration. For subsection (1) , it does not matter whether the last continuing trustee is an original trustee of the trust or was appointed by the court or otherwise. Subject to a contrary intention in the trust instrument, the last continuing trustee may, by instrument, appoint 1 or more persons as trustees to replace themself. 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. The power conferred under subsection (3) is a personal right only of the last continuing trustee. (sec.23-ssec.1) This section applies if all of the following apply— the last continuing trustee of a trust is an insolvent under administration; there is no appointor for the trust, or no appointor who is able and willing to act under section 20 to appoint a trustee to replace the last continuing trustee; if the trust instrument includes a mechanism, other than the appointment of an appointor, for appointing a trustee to replace the last continuing trustee—an appointment of a trustee under the mechanism has not taken effect within a reasonable period after the later of the following to happen to the last continuing trustee— becoming the last continuing trustee; becoming an insolvent under administration. (sec.23-ssec.2) For subsection (1) , it does not matter whether the last continuing trustee is an original trustee of the trust or was appointed by the court or otherwise. (sec.23-ssec.3) Subject to a contrary intention in the trust instrument, the last continuing trustee may, by instrument, appoint 1 or more persons as trustees to replace themself. 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.23-ssec.4) The power conferred under subsection (3) is a personal right only of the last continuing trustee.

• (a) the last continuing trustee of a trust is an insolvent under administration;
• (b) there is no appointor for the trust, or no appointor who is able and willing to act under section 20 to appoint a trustee to replace the last continuing trustee;