LAY­ING THE FOUNDATION

Business Day - Business Law and Tax Review - - BUSINESS LAW & TAX REVIEW -

The court found that th­ese cases ad­dress the po­si­tion where the num­ber of trustees is less than the min­i­mum re­quired in terms of the trust deed. As Cameron JA stated in Parker, where fewer than the spec­i­fied num­ber of trustees are in of­fice “the trust suf­fers from an in­ca­pac­ity that pre­cludes ac­tion on its be­half”. In this type of sit­u­a­tion there can be no ques­tion of rat­i­fi­ca­tion as the pur­ported ac­tion is in­valid in the first place. In this mat­ter the pre­scribed num­ber of trustees was present, so they had ca­pac­ity to act. The author­ity is­sue could thus be cured by rat­i­fi­ca­tion.

Pic­ture: iS­TOCK

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