The Tale of the Trustees...
Once, a trust was created to hold several farms in the Magoebaskloof area on behalf of the community. A property company was set up to lease the …
farms from the trust and then sub-lease them, while all the profits of the company were to be paid to the trust as dividends.
But it so happens, even though it was stated in the trust deed that the trustees were only allowed a term of office of three years, several trustees remained in office after their terms had expired, and furthermore, they did not hold the required AGMs as set out in the deed and did not fulfil their fiduciary duties properly.
It is no surprise, therefore, that an order was obtained declaring that the trustees were in violation of the trust deed, which ultimately resulted in them being removed as trustees by the Master of the High Court, acting under section 20(2) of the Trust Property Control Act, 57 of 1988 (the TPCA); a decision that was upheld by the Supreme Court of Appeal.
The lesson of this tale is that the Master of the High Court does not only have the power, but actually has a duty, to ensure that the fiduciary duties of trustees are upheld. (kgoba & others v Ledwaba NO & others [2018] ZASCA 181)
A happy ending: At the CA Trust Company, we ensure that all legislative requirements and all formalities prescribed by the Master of the High Court/SARS are attended to efficiently and accurately. As a member of the Fiduciary Institute of South Africa, we are subject to the enforcement of professional and ethical standards and are provided with a framework within which we are able to achieve the qualifications and competencies required to be a trust company of excellence.
