1. Legal aspects of Corporate Business
Submitted To
Dr. Daksha Pratapsinh
Presented By
Bhalala Niddhi N.
(Roll no. = 05)
M.Com. sem.- 2
Department of commerce
Saurashtra University

2. Trust
And
society

3. Overview Introduction TRUSTS: - What is Trust? - Definition of Trust
- Types of Trust
- The Indian Trust Act,1882
Creation of Trusts
Duties and Liabilities of Trusts
Rights and powers of Trusts
Disabilities of Trustees
Rights and Liabilities of the beneficiary
SOCIETY: - What is Society ?
Document required to registered society
Eligible person to form society
Registration process
Formation of society = under Gujarat Society Act
Difference between Trust and society

4. In India non profit organizations can be registered as:
Introduction
In India non profit organizations can be registered as:
Trusts
Societies
Section 25
Companies

5. trusts
What is a trust ?
A trust is a right in property held by one person for the benefit of another.
A trust may be created to benefit a family member, a charity , or even a pet.
A charitable trust is an irreversible trust established for charitable purposes.
Trust deed is a document used to set up a trust.

6. Definition of Trust Section 3 of Indian Trust Act 1882,
A “ Trust” is an obligation annexed to the ownership of property , and arising out of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner-
The person who resposes or declared the confidence is called the “author of the trust”
The person who accepts the confidence is called the “trustee”
The person for whose benefit the confidence is accepted is called the “beneficiary”
The subject matter of the trust is called “trust – property” or “trust-money”
The “beneficial interest” or “interest” of the beneficiary is his right against the trustee as owner of the trust property
The instrument, if any, by which the trust is declared is called the “instrument of trust”
The word “confidence Resposed” is key word for the formation of Trust ,since the trustee is bound to held the property for the beneficiary and the can’t use the property for his own benefit.

7. Types of Trusts Public Trusts Private Trusts Express Trusts
Bare Trusts
Fixed Trusts
Discretionary Trusts
Resulting Trusts
Constructive Trusts
Hybrid Trusts
lmplied Trusts

8. The Indian Trust Act,1882 Creation of Trust
Duties and liabilities of Trustees
Rights and powers of Trustees
Disabilities of trustees
Rights and Liabilities of the Beneficiary

9. Creation of Trusts Sec. 4 Lawful purpose
Sec. 5 Trusts of immoveable or moveable Property
Sec. 6 Creation of Trusts
Sec. 7 Who may create Trusts
Sec. 8 Subject of Trusts
Sec. 9 Who may be beneficiary
Sec. 10 Who may be Trustee

10. Duties and Liabilities of Trusts
Sec. 11 Trustee to execute trust
Sec. 12 Trustee to inform himself of state of trusts – property
Sec.13 Trusts to protect title to trusts – property
Sec. 14 Trusts not to set up title adverse to beneficiary
Sec. 15 Care required from trustee
Sec.16 Conversion of perishable property
Sec.17 Trusts to be impartial
Sec Trusts to prevent waste
Sec.19 Accounts and information
Sec.20 Investment of trust - money
Sec. (20)A Power to purchase redeemable stock at a premium
Sec.21 Mortgage of land pledged to government under Act 26 of
Sec.22 Sale by trustee directed to sell within specified time

11. Sec.23 Liability for breach of trusts
Sec.24 No set – off allowed to trustee
Sec.25 No- liability for the acts or defaults of co- trustee
Sec.26 Non – liability for predecessor’s default
Sec.27 Several liability of co- trustee
Sec.28 Non – liability of trustee without notice of transfer by beneficiary
Sec. 29 liability of trustee where beneficiary’s interest is forfeited to the government
Sec.30 Indemnity of trustees

12. Rights and Powers of Trusts
Sec.31 Right to title – deed
Sec.32 Right to reimbursement of expenses
Sec.33 Right to indemnity from gainer by breach of trusts
Sec.34 Right to apply to court for opinion in management of trusts
Sec.35 Right to settlement of account
Sec.36 General authority of trustee
Sec.37 Power to sell in lots, and either by public auction or private contract
Sec.38 power to sell under special conditions. Power to buy in and re sell
Sec.39 power to convey
Sec.40 Power to vary investment
Sec. 41 power to give receipts

13. Disabilities of Trustees
Sec.46 Trustee cannot renounce after acceptance
Sec. 47 Trustee cannot delegate
Sec.48 Co – trustees cannot act singly
Sec. 49 Control of discretionary power
Sec.50 Trustee may not charge for services
Sec.51 Trustee may not trust- property for his own profit
Sec.52 Trustee for sale or his agent may not buy
Sec.53 Trustee may not buy beneficiary’s interest without permission
Sec.54 Co-trustees may not lend to one of themselves

14. Rights and liabilities of the Beneficiary
Sec.55 Right to rents and profits
Sec.56 Right to specific execution
Sec.57 Right to inspect and take copies of instrument of trust account, etc
Sec.58 Right to transfer beneficial interest
Sec.59 Right to sue for execution of trust
Sec.60 Right to proper trustees
Sec.61 Right to compel to any act of duty
Sec.62 Wrongful purchase by trustee
Sec.63 Following trust property- into the hands of third persons;
into that which it has been converted
Sec.64 Saving of rights of certain transferees
Sec.65 Acquisition by trustee of trust- property wrongfully converted

15. societies What is society?
It is an association person to carry out literary , scientific or charitable purpose.
It is an organization in which main objective is not to profit.
Societies registered for charitable purposes like Education, culture , etc.

16. Document required to registered society
Request letter
Two sets of MOA & AOA
Affidavit
Copy of residence
Address proof

17. Eligible person to form Society
Foreigners
Society
Registered Society
Partnership
form
Limited company

18. Registration Process Deciding upon the name of society
Drafting of Memorandum of Association and Rules & regulations
Affidavit by the president on secretary of the society on regarding the relationship between subscriber to the Memorandum
No objection certification from owner if the premises is on rent
Affidavit by the president or secretary of the society on regarding the relationship between subscriber to the Memorandum

19. Formation of Society – under Gujarat Society Act
The amendments made are the same as those of Maharashtra except that in sec.1B(1) for the words “ Throughout the state of Maharashtra”.
Insert the following section ,namely 1A Interpretation in this Act, Unless there is anything repugnant to the society or context, the expression ‘registrar’ .
So renumbered after the words “The name of society” insert the following namely “The place of situation of the registered office of the society”
“ A society may by a special resolution passed by a majority of not less than 3/5 of the total membership of the society, after its MOA.

20. There shall be sent to registrar a statement showing
There shall be sent to registrar a statement showing changes during the year to which the list relates in the personnel, of governors, councils, Directors, committee or other governing body to whom the management of the affairs of the society is entrusted and Certified to be copy by not less than three of the member of the governing body.
A copy of every alteration made in rules of the society certified to be a correct copy shall be sent to the registrar within 30 days of the making of such alteration.

21. Difference Between Trust and Society
Basis of Difference
Trust
Society
Statue
Private trusts are governed by Indian trust Act,1882
Society Registration Act,1860
Minimum number of members
Two
seven
Geographical area of activities
All India
A separate registration for all India level is required
Nature of control
One man control i.e. settler
Democratic system. Decisions are made by voting.
Amendments
Can easily be done via a supplementary trust deed
Relatively more difficult.
Name
Easily available
A bit difficult to get the desired name

22. Basis of Difference
Trust
Society
Bank A/C operation
Controlled by one person, settler
Two person, either president or secretary and treasurer
Family members
Can become trustees
Registrar objects on family members becoming part of the governing body
Governed by
Board of Trustees
Governing body
Main documents
1. Trust deed
MOA
Rules and regulation
Objective
Can be general
Have to be specific

23. Conclusion
So, The NGO Registered under the societies Registration Act,1860 are ‘non profit organizations’ and as such they are prohibited from distributing any monetary residual to their own members. Once the Trust has been created for charitable purpose the law shall fulfill such intension of charity.

24. Thank
you