Public Trustee Act 1950 [Act 247] — Laws of Malaysia

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... Repeal. Py Paie - istas Parily" PY.(ress)Rilo-pabests. TRepealed By Act 532 Ai Act to provide for the appointment of a Public Trustee. [West Malaysia-Ist April 1951; L.N.99/51. Sabah and Sarawak-Ist March 1966.] P.U. 153/66. 1. This Act may be cited as the Public Trustee Act 1950. Short title. 2. In this Act, unless the context otherwise requires-- "Board" means the Public Trustee Investment Board referred to in section 13; "Common Fund" means the Common Fund referred to in section 10; "Court" means the High Court in Malaya or the High Court in Borneo, as the case may require; "expenses" includes costs and charges; "letters of administration" means letters of administration of the estate and effects of a deceased person, whether general or with a will annexed, or limited either in time or otherwise; "officer of the Public Trustee" includes a Deputy Public Trustee and an Assistant Public Trustee; "private trustee" means al trustee other than the Public Trustee; "trust" includes an executorship or administratorship; and "trustee" shall be construed accordingly; and "trust property" includes all propetty in the possession or Interpreta- пoд. [S.2-4] under the control, wholly or partly, of the Public Trustee by virtue of any trust; «West Malaysia" has the meaning assigned thereto Act23/67. in section 3 of the Interpretation Act, 1967, and includes the Federal Territory.. Other expressions have the same meaning as in the Act 208. Trustee Act 1949. Office of Trustec. General powers and duties of Trustee. Powers. Refusal of trust. ESTABLISHMENT OF PUBLIC TRUSTEE 3. (1) There is hereby established the office of Public Trustee. (2) The Public Trustee shall be a corporation sole under the name "Public Trustee, Malaysia". , with per™ petual succession and an oflicial seal, and may sue and be sued under the above name like any other corporation sole. POWERS AND DUTIES OF PUBLIC TRUSTEE 4. (1) Subject to and in accordance with the provisions of this Act and rules made thereunder, the Public Trustee may- (a) act in the administration of estates of small value; (b) act as an ordinary trustee; (c) be appointed trustee by the Court. (2) Subject to the provisions of this Act and to the rules made thereunder, the Public Trustee may act either alone or jointly with any person or body of persons in any capacity to which he may be appointed in pursuance of this Act and shall have the same powers, duties, and liabilities, and be entitled to the same rights and immunities and be subject to the same control and orders of the Court, as a private trustee acting in the same capacity. (3) The Public Trustee may decline, either absolutely or except on the prescribed conditions, to accept any trust, but he shall not decline to accept any trust on the ground only of the small value of the trust property. [S.4-5] (4) The Public Trustee shall not accept any trust public which involves the management or carrying on ot any to accept a Trustee not business, except in the cases in which he may be business authorized to do so by rules made under this Act, nor trust, ora of creditors, nor the administration of any estate known any trust under a deed of arrangenaent for the beneft re or believed by him to be insolvent. estate. 5. (1) The Public Trustee may, on his own application Public or on the application of any other person by summons, Teresemay be appointed by the Court to act as next friend of any minor in minor for the purpose of instituting any suit or pro-cases. ceeding in the name of such minor. (2) Il in any pending suit or proceeding it becomes necessary to add any minor as co-plaintifi, the Court may of its own motion or on the application of the Public Trustee or any other person appoint the Public Trustee to act as next friend of such minor in such suit or proceeding. (3) In any suit or proceeding in which a minor is defendant or in which it becomes necessary to add a minor as co-detendant, the Court of its own motion or on the application of the Public Trustee or any other person may appoint the Public Trustee to act as guardian for the suit for such minor for the purposes of such suit or proceeding. (4) The Court shall not make any order under this section unless the Public Trustee has had an opportunity of being heard and provision is made to the satistaction of the Court tor the payment of the Public Trustee's costs as between solicitor and client and for payment ot any costs which may be awardec against the Public Trustee or directed to be paid by (5) In any suit or proceeding in which the Public Trustee is appointed under this section to act for a minor, no costs shall be recoverable from the Public Trustee personally or from the Government. (6) In this section "suit" means only an action or suit for the administration of the estate of any deceased person or of a trust, and "proceeding" means only a proceeding under the Rules of the High Court 1980. P.U. (A) 50/80. Administration of small estates. Vesting of trust property. Act 208. Administrative powers. [S61 ADMINISTRATION OF ESTATES OF SMALL VALUE 6. (1) Any person who in the opinion of the Public Trustee would be entitled to apply to the Court for order for the administration by the Court of an estate, the gross capital value whereof is proved to the satisfaction of the Public Trustee to be less than five thousand ringgit, may apply to the Public Trustee to administer • the estate, and where any such application is made and it appears to the Public Trustee that the persons beneficially entitled are persons of small means, the Public Trustee shall administer the estate, unless he sees good reason for refusing to do so. (2) On the Public Trustee undertaking, by declaration in writing signed and sealed by him, to administer the estate, the property in the estate other than stock shall, by virtue of this Act and notwithstanding anything in any otner written law contained, vest in him, and the right to transfer or call for the transfer of any stock forming part of the estate shall also vest in him, in like manner as if vesting orders had been made for the purpose by the Court under the Trustee Act 1949, and thał Act shall apply accordingly : Provided that- (a) the operation of this subsection in respect of land shall be subject to due compliance with the requirements of the laws relating to registration and that for the purposes of such laws the said declaration shall have the same effect as an order of the Court; and b) the pelb ir Trestin shall stce witihothehe leave of the Court. (3) As from such vesting any trustee entitled under the trust to administer the estate shall be discharged from all liability attaching to the administration, except in respect of past acts. (4) For the purposes of the administration the Public Irustee may exercise such of the administrative powers and authorities of the Court as may be conferred on him by rules under this Act. IS.6-7] (5) Rules shall be made under this Act for enabling Rules. the Public Trustee to take the opinion of the Court on any question arısıng in the course of any administration without judicial proceedings, and otherwise for making the procedure under this section simple and inexpensive. (6) Where proceedings have been instituted in any Estate Court for the administration of an estate and by reason orderedby ot the smail value of the estate it appears to the Court administerec hat the estate can be more economically administered by Public by the Public Trustee than by the Court or that for any other reason it is expedient that the estate should be administered by the Public Trustee instead of the Court, the Court may order that the estate shall be administered by the Public Trustee, and thereupon, subject to any directions by the Court, this section shall apply as if the administration of the estate had been undertaken by the Public Trustee in pursuance of this section. (7) When any trust money which is not included in the investment account of the Common Fund is normally insufficient if kept in a bank current account to earn bank interest, the money may be kept in a general banking account and any interest allowed by the bank on the daily balance of such general banking account shall be paid into the Consolidated Fund. WHEN THE PUBLIC TRUSTEE ACTS AS AN ORDINARY TRUSTEE 7. (1) The Public Trustee may by that name, or any Appointment other sufficient description, be appointed to be trustee mrusteico of any will or settlement or other instrument creating be trustec, a trust or to perform any trust or duty belonging to a executor, class which he is authorized by rules made under this Act to accept, and may be so appointed whether the Will or settiement or instrument creating the trust or duty was made or came into operation before or after the commencement of this Act, and either as an original ot as a new trustee, or as an additional trustee, in the same cases and in the same manner and by the same persons or Court as if he were a private trustee, except that, though the trustees originally appointed were two or more, the Public Trustee may be appointed sole trustee. etiremer E co-truste Act 208. Notice to beneficiaries. Granting probate to Trustee. [S.7-8] Acr 247 (2) Where the Public Trustee has been appointed a trustee of any trust, a co-trustee may retire from the trust under and in accordance with section 43 of the Trustee Act 1949, notwithstanding that there are not more than two trustees, and without such consents as are required by that section. (3) The Public Trustee shall not be so appointed either as a new or additional trustee where the will, settlement, or other instrument creating the trust or duty contains a direction to the contrary, unless the (4) Notice of any proposed appointment of the Public Trustee either as a new or additional trustee shall, where practicable, be given in the prescribed manner to all persons beneficially interested who are resident in Malaysia and whose addresses are known to the persons proposing to make the appointment, or, if such beneficiaries are minors, to their guardians. (5) If any person to whom such notice has been given within twenty-one days from the receipt of the notice applies to the Court, the Court may, it having regard te he interests of all the beneficiaries it considers i expedient to do so, make an order prohibiting the appointment being made: Provided that a failure to give any such notice shall not invalidate any appointment made under this section. 8. (1) IE, in pursuance of any rule under this Act, the Public Trustee is authorized to accept by that name probates of wills or letters of administration, the Court may grant such probate or letters of administration to the Public Trustee by that name. (2) For such purpose the Court shall consider the Public Trustee as in law entitled equally with any other person or class of persons to obtain the grant of letters of administration, save that the consent or citation of the Public Trustee shall not be required for the grant of letters of administration to any other person and that, as between the Public Trustee and the widower, widow, or next-of-kin of the deceased, the widower, widow, or next-of-kin shall be preferred, unless for good cause shown to the contrary. [S.8-10] (3) Any executor who has obtained probate or any Transfer by administrator who has obtained letters oi administraioa, and potwithstanding that he has acted in the acsubibare •Trustee. stration either solely or jointly with the continuing executors or administrator, if any. (4) The order of the Court sanctioning such transfer shall, subject to the provisions of this Act, give to the Public Trustee all the powers of such executor and administrator. (5) Such executor and administrator shall not be in any way liable in respect of any act or default in reference to such estate subsequent to the date of such order, other than the act or default of himself or of persons other than himself for whose conduct he is in law responsible. 9. The Court may, on the application of any person Appointeneticially interested, appoint the Public Trustee, if ment by sufficient cause is shown, in place of all or any existing Puutof executors or administrators. THE COMMON FUND 10. (1) Subject as hereinafter provided all capital Formation moneys available for investment which shall be in the Fund. of Common hands of the Public Trustee at the commencement of this Act or which shall thereafter come into his hands shall form one Common Fund and shall be invested in any investments permitted by law for the investment of trust funds. (2) Any investments of capital moneys belonging to any estate in the hands of the Public Trustee at the commencement of this Act and any investments thereafter coming into his hands may, subject as hereinafter provided, be taken over and included in the investment account of the Common Fund. [S. 10-12] (3) All investments taken over under subsection (2) shall be taken over at the market rate ruling at the date of such taking over, less any interest accrued at such date, and no such investment shall be taken over unless it is an investment permitted by law for the investment of trust funds and, in the opinion of the , is and is likely to continue to be readily realisable. For the purposes of this subsection interest shall be deemed to accrue from day to day and shall be apportionable in respect of time accordingly. (4) Any investment made on account of the Common Fund or included in its investment account shall not be made or held on account of or belong to any particular estate. What are 11. (1) The following shall not be included in or form not to be included in part of the Common Fundthe Common Fund. (a) moneys expressly or by necessary implication forbidden to be included in the Common Fund or directed to be invested in investments other than those permitted by law for the investment of trust funds; (b) investments held by the Public Trustee which have not been taken over under section 10 (2). (2) The provisions of section 16 shall not apply to the moneys and investments referred to in subsection (1) of this section. (3) Nothing in this section contained shall be deemed to limit or restrict the liability of the Consolidated Fund under section 17. Interest 12. (1) The interest payable to the respective estates, payable on the moneys of which form part of the Common Fund, the moneys included in shall be at such rate as the Minister may by notification the Common in the Gazette prescribe. Fund. [Am. Act A197: (2) Such rate shall be published in the month of Act A500.] December in each year and shall remain in force from the Ist day of January to the 31st day of December of the next ensuing year. (3) A rate may be prescribed for payment on capita_ moneys which are not payable at call. • [S.12-14] credited eret payay teo ftom tapecoomon fand shall be Provided that the Public Trustee may at his discretion credit such interest at such more frequent intervals as he may deem fit in the case of any particular estate. Pitlte Triste hnvestneat Roared a Baard Syled the Ceef ete Public Trustee Investment Board. Boardment follo The Board shall consist of seven members, as 13 231 (a) the Solicitor-General who shall be the Chairman; (b) the Public Trustee; (c) a public officer nominated by the Minister of Finance; (d) two public officers nominated by the Minister; (e) two public officers, one serving in Sabah and one serving in Sarawak, nominated by the Minister. (3) Three of the members of the Board shall form a quorum. (4) The Board may from time to time make by-laws for the control of its business and proceedings. 14. (1) No investments shall be purchased or sold by Powers and the Public Trustee without the sanction of the Board. the Board. (2) No investments shall be taken over and included in the investment account of the Common Fund as provided by section 10 (2) without the sanction of the Board. (3) In the month of November in each year the [4m. Bhe es smalted vaint of the capist ass ts of the com- Act A197; mon Fund and the estimated revenue therefrom for the ensuing year, and shall at the same time recommend to the Minister the rate which in its opinion should be Paesoribed by him for the ensning year under section - [S. 14-17] (4) In the month of February in each year the Board shall give such directions to the Public Trustee as may be necessary with regard to the disposal of any balance standing to the credit of the income account of the Common Fund at the end of the preceding year aiter interest payable to the beneficiaries and other lawiul charges have been duly debited to the said income account. Such part of such balance as the Board may direct shall be carried to the credit of a reserve fund and any excess shall be carried to the credit of the income account for the current year. and shall be dealt witnd by tae Board in süch contror as may be prescribed. 15. No person dealing with the Public Trustee in the matter of the sale or purchase of any investment shall be under any obligation to enquire whether such sale or purchase has received the sanction of the Boara. Persons dealing with Trustee not obliged to enquire whether the dealing has been sanctioned by the Board. Government 16. (1) The Consolidated Fund shall be liable to make guarantee in regard to good any lawful claims on the Common Fund which moneys cannot be met therefrom, whether such claims relate to included in the Common capital moneys or to income. Fund. (2) Ihe capital moneys claimable by any estate shall include the moneys from such estate included in the Common Fund and, where investments have been taken over under section 10 (2) they shall also include the value of such investments as ascertained in accordance with the provisions of section 10 (3). Liabllity of public revenue. LIABILITY; OFFICERS AND OFFICES; FEES 17. The Consolidated Fund shall be liable to make good all sums required to discharge any llability which the Public Irustee, it he were a private trustee, would be personally liable to discharge, except where the liability is one to which neither the Public Trustee nor any of his officers has in any way contributed and which neither he nor any of his officers could by the exercise of reasonable diligence have averted, and in that case the Public Trustee shall not, nor shall the Consolidated IS.18-19] Agong determines. *(2) The Yang di-Pertuan Agong may appoint a Jeputy Public Trustee and such persons to be Assistant ublic Trustees and other officers of the Public Truster Ast aco slch Dendy Pusbaic Trustee and Asoif thit Public Trustee Public Trustees and other officers shall hold office upon such • manner as the Yang di-Pertuan Agong may determine. Public Trustee is heTeby de ared eo be a oftibic se the within the meaning of the Penal Code. F.M.S. Cap, 45. (4) The salary or remuneration of the Public Trustee and the officers of the Public Trustee and such other expenses of executing the office of the Public Trustee or otherwise carrying this Act into effect as may be sanctioned by the Yang di-Pertuan Agong shall be paid out of the Treasury. (5) The. Deputy Public Trustee and any Assistant Public Irustee shall have and exercise such ot the powers and shall perform such of the duties oi the Public Trustee under this Act as may be prescribed by rules made under this Act. 19. (1) There shall be charged in respect of the duties Fees charged of the Public Trustee such tees, whether by way of by publc percentage or otherwise, as the Minister prescribes. Trustee. [Am. Act A197.] (2) Any expenses which might be retained or paid out of the trust property if the Public Trustee were a private trustee shall be so retained or paid, ana the fees shall be retained or paid in the like manner as and in addition to such expenses. (3) Such fees shall be paid into the Treasury. * (Powers delegated vide L.N. 87/60). [S.19-21] • section as ibeidene oa tial ans indome shall be ad thimined by the Public Trustee. #u(1)/32/82) A coutiy ti SUPPLEMENTAL PROVISIONS AS TO PUBLIC TRUSTEE Appeal I 20. A person aggrieved by any act or omission or Court frol decision of the Public Trustee in relation to any trust Trustee. may apply to the Court, and the Court may make such order in the matter as the Court thinks just. Mode of action of Trustee. 21. (1) The Public Trustee shall not, nor shall any of his officers, act under this Act for reward, except as provided by this Act. Employment of solicitors. bankers, accountants and brokers. (2) The Public Trustee may, subject to the rules made under this Act, employ for the purposes of any trust such solicitors (or, in sabah and Sarawak, adyocates), bankers, accountants and brokers or other persons as he considers necessary. (3) In determining the persons to be so employed in relation to any trust the Public Trustee shall have regard to the interests of the trust, but subject to this shall, whenever practicable, take into consideration the wishes of the creator of the trust and of the other trustees (it any) ana oi the beneticiaries, either expressed or as implied by the practice ot the creator of the trust or in the previous management of the trust. (4) On behalf of the Public Trustee such person as may be prescribed may take any oath, make any amrmation or declaration, verity any account, glve versonal attendance at any Court or place and do any act or thing whatsoever which the Public Trustee is required or authorized to take, make, verity, give or do. (5) Where any bond or security would be required from a private person upon the grant to him of administration or upon his appointment to act in any capacity, the Public Trustee, if administration is granted to him or if he is appointed to act in such capacity as atoresaid, shall not be required to give such bond or security but shall be subject to the same liabilities and duties as if he had given such bond or security. - IS.21-22] (6) The entry of the Public Trustee by that name in the books of a company shall not constitute notice of a trust, and a company shall not be entitled to object to enter the name of the Public Trustee on its books by reason only that the Public Trustee is a corporation, nd, in dealings with property, the fact that the perso r' one of the persons dealt with is the Public Truste shall not in itself constitute notice of a trust. INVESTIGATION AND AUDIT OF TRUST ACCOUNTS 22. (1) Subject to rules under this Act, and unless the Investigation Court otherwise orders, the condition and accounts of and audit of any, trust shall, on an application being made and accounts. notice thereot given in the prescribea manner by any such soliertor of parfile ecountant e amad bdiagde by on by the applicant and the trustees or, in delault of agreement, by the Public Trustee or some person appointed by him. (2) Except with the leave of the Court such an investigation or audit shall not be required within tha đhc shay twelve months atter any previous investigation or audit, and a trustee or beneficiary shall not be appointed under this section to make an investigation or audit. (3e Thter easoed mak audibt nhal haioa riat of es n access to the books, accounts, and vouchers of the trustees and to any securities and documents of title held by them on account of the trust, and may requite from them such information and explanation as may be necessary for the performance of his duties. (4) Upon the completion of the investigation and audit such person shall forward to the applicant and to every trustee a copy of the accounts, together with a report thereon, and a certificate signed by him to the effect that the accounts exhibit a true view of the state of the affairs of the trust and that he has had the securities of the trust fund investments produced to anco unts are be eient in such resaeets as may be spech fied in such certificate. [S.22-23] Inspection by beneficiaries. Removal of auditor. Remunera- • tion and expenses of auditor. LAm. Act AS0O.I 114) 132/87 Rules by Minister. LAm. Act A197; Act 23/67.] (5) Every beneficiary under the trust shall, subject to rules under this Act, be entitled at all reasonable times to inspect and take copies of the accounts, report, and certificate and, at his own expense, to be furnished with copies thereof or extracts therefrom. (6) The auditor may be removed by order of the ourt, and Oo Uecoanes baakrupt oto insapanle od ar reg bet ore tes avestigation and audit is completed, a new auditor ma e appointed in his place in like manner as the origina auditor. (7) The remuneration of the auditor and the other expenses of the investigation and audit shall be such as may be prescribed by rules under this Act and shall, unless the Public Trustee otherwise directs, be borne by the estate. (8) In the event of the Public Trustee so directing, he may order that such expenses be borne by the applicant or by the trustees personally or partly by them and partly by the applicant. (9) If any person having the custody of any documents to which the auditor has a right of access under this section fails or refuses to allow him to have access thereto or in anywise obstructs the investigation or audit, the auditor may apply to the Court, and thereupon the Court shall make such order as it thinks fit. (10) Any person who in any statement of accounts, report, or certificate required for the purposes of this section wilfully makes a statement false in any material arucular snal be llable to imprisonment el-eithe lescription for a term not exceeding two vears or to. fine not exceeding two thousand ringgit or to both. RULES 23. (1) The Minister shall make rules for carrying into etlect the objects oi this Act, and in particular for all or any of the following purposes- (a) establishing the office of Public Trustee and prescribing the trusts or duties which he 1s authorized to accept or undertake and the security, it any, to be given by the Public Trustee and his officers; [S.23-24] (b) the transfer to and from the Public Trustee of any property; (c) the accounts to be kept and an audit thereof; (d) the establishment and regulation of any branch office; (e) excluding any trusts from the operation of this Act or any part thereof; (f) the form and manner in which notices under this Act shall be given; (g) the payment of interest; (h) the date from which interest, if allowed, is to be paid; (i) the management, investment and disposal of the reserve fund; (J) generally to carry out the provisions oi sections 10 to 16 and 24 (2) Every rule under this Act shall be laid before the Dewan Rakyat and shall not come into operation until approved by a resolution of the Dewan Rakyat. TRANSITIONAL AND REPEAL 24. (1) All property movable and immovable, which Transfer was, immediately before the commencement of this Act, ondrogting vested in the Public Trustee incorporated by the Public vested in Trustee Enactment of the Federated Malay States or the Public in the Public Trustee incorporated by the Public under the Trustee Ordinance of the Straits Settlements in his repealed capacity as Public Trustee in and for the Settlements of Enactment or Ordi- Penang and Malacca, is hereby vested in like manner nance. as if vesting orders had been made for the purpose by the Court under the Trustee Act 1949, in the Public Ac1208. Trustee for the same estate and upon the same tenure and subject to the same trusts and conditions as and upon which the same was previously held by the aforesäid Public Trustees or either of them, and all rights vested in the aforesaid Public Trustees or either of them immediately before the commencement of this Act and all liabilities to which the said Public Trustees or either of them were subject imimediately before the [List oi Amendments] Parioulars under sevsonc, i9an l lil of the Revision Amending law L.N. 332/58 Ord. 50/58 •*+ L.N. 143/64 _••• P.U. 99/66 ... Act 23/1967 Act A197 •.. Act A253 Act A500

Public Trustee Act 1950

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