Section 25: Custodian trustee

25. Custodian trustee (1) The terms of a trust may provide for the appointment of a custodian trustee which shall be a firm, partnership or body corporate. (2) Subject to the terms of the trust— (a) the trust property shall be vested in the custodian trustee as if the custodian trustee were the sole trustee; (b) notwithstanding the vesting of the trust property in the custodian trustee, the management of the trust property and the exercise of all powers and discretions exercisable by the trustee under the trust shall remain vested in the managing trustee; (c) the sole function of the custodian trustee shall be to hold the trust property, invest its funds and dispose of the assets as the managing trustee may direct, for which purpose the custodian trustee shall execute all such documents and perform all such acts as are necessary; [Issue 1] T22 – 14 Revised Laws of Mauritius (d) where there is more than one managing trustee, a direction given by the majority of them shall be valid as if given by all of the managing trustees. (3) The custodian trustee shall not be liable for acting on the direction given by the managing trustee except where the custodian trustee had reason to believe that the direction so given— (a) is in contravention of any law, rule or regulation; (b) is contrary to the terms of the trust; (c) is contrary to sound commercial practice; or (d) is otherwise objectionable. (4) Where the custodian trustee is of opinion that the direction of the managing trustee cannot be complied with for any reason referred to in subsection (3), it may apply to the Court as a person having an interest in the trust for a direction and the Court shall make such order as it thinks proper. (5) The custodian trustee shall not be liable for any act or default committed by the managing trustee. (6) All actions and proceedings relating to the trust property shall be brought or defended in the name of the custodian trustee at the instruction of the managing trustee, and the custodian trustee shall recover any costs and expenses from the trust property. (7) No person dealing with the custodian trustee shall be concerned to inquire as to the concurrence or otherwise of the managing trustee or be affected by notice of the fact that the managing trustee has not concurred in any decision or direction.