Release.—When the trustee has realised all the property of the bankrupt, or so much thereof can, in his opinion, be realised without needlessly pro tracting the trusteeship, and has distributed a final dividend, if any, the Board of Trade will, on his application, cause a report of his accounts to be prepared, and on his complying with all the requirements of the Board, will take into consideration the report and any objection which may be urged by any creditor or person interested against the release of the trustee, and will either grant or withhold the release accordingly, subject nevertheless to an appeal to the High Court. And in the same way the release may be obtained by a trustee who has ceased to act by reason of a composition having been approved, or has resigned, or has been removed from his office. Where a release is withheld the Court may, upon the application of any creditor or person interested, make such order as it thinks just, charging the trustee with the consequences of any act or default he may have done or made contrary to his duty. An order of the Board releasing a trustee dis charges him from all liability in respect of any act done or default made by him in the administration of the affairs of the bankrupt, or otherwise in relation to his conduct as trustee ; but any such order may be revoked on proof that it was obtained by fraud or by suppression or concealment of any material fact. Where the trustee has not previously resigned or been re moved, his release operates as a removal of him from his office, and thereupon the official receiver becomes trustee.
Removal.—If a receiving order is made against a trustee he thereby vacates his office. The creditors have power to remove a trustee. To do so they should proceed by ordinary resolution, at a special meeting called for the purpose, of which seven days' notice has been given. At die same or any subsequent meeting they may appoint another trustee as if a vacancy had occurred. In the case of a vacancy the proceedings are as follows :—The creditors in general meeting appoint a person to fill the vacancy, and there upon the same proceedings are taken as in the case of a first appointment ; the official receiver, on the requisition of any creditor, will summon a meeting to fill a vacancy. If the creditors do not within three weeks after the occurrence of a vacancy appoint a new trustee, the official receiver reports the matter to the Board of Trade, and the Board may appoint a trustee—but in such case the creditors or committee of inspection have the same power of appointing a trustee as in the case of da first appointment ; during vacancy the official receiver acts as trustee. If the Board of Trade are of opinion that a trustee appointed by the creditors is guilty of misconduct, or fails to perform his duties, the Board may remove him from his office ; but if the creditors, by ordinary resolution, disapproves of his removal, he or they may appeal against it to the High Court. See BANKRUPTCY ; OFFICIAL RECEIVER.
trust is a right of property, real or personal, held by one party for the benefit of another. A trust implies two estates or interests—one equitable and one legal ; one person as trustee holding the legal title, while another as the cestui que trust has the beneficial interest.
Sometimes the equitable title of the beneficiary, sometimes the obligation of the trustee, and, again, the right held is called the trust. But the right of the beneficiary is in the trust ; the obligation of the trustee results from the trust ; and the right held is the sulnect-matter of the trust. Neither of them is the trust itself. Altogether they constitute the trust (Bouvier's Law Dictionary). In England the law relating to trusts is found, for the most part, in the Trustee Acts, 1888 and 1893. By the latter Act it is provided that the expression "trust " is not to include the duties incident to an estate conveyed by way of mortgage; but, with that exception, the expressions " trust" and " trustee" include implied and constructive trusts, and cases where the trustee has a beneficial interest in the trust property, and the duties incident to the office of personal representative of a deceased person. And the Act of 1888 explains that the expression " trustee" includes " an executor or administrator and a trustee whose trust arises by construction or implication of law, as well as an express trustee, but not the official trustee of charitable funds." The provisions relating to a trustee apply as well to several joint trustees as to a sole trustee.
Statute of any action or other proceeding against a trustee or any person claiming through him (except where the claim is founded upon any fraud or fraudulent breach of trust to which the trustee was party or privy, or is to recover trust property or the proceeds thereof still retained by the trustee, or previously received by the trustee and con verted to his use) the following provisions apply :—(a) All rights and privileges conferred by any Statute of Limitations are to be enjoyed in like manner as they would have been if the trustee or person claiming through him had not been a trustee or other person as aforesaid ; (b) if the action or other proceeding is brought to recover money or other property, and is one to which no existing Statute of Limitations applies, the trustee or such other perkn is entitled to the benefit of and be at liberty to plead the lapse of time as a bar to such action or proceeding in the like manner as if the claim had been against him in an action of debt for money had and received, but so that the Statute will run against a married woman entitled in possession for her separate use, whether with or without a restraint upon anticipation, but will not begin to run against any beneficiary unless and until the interest of such beneficiary is an interest in possession. No beneficiary, as against whom there would be a good defence by virtue of this limitation of actions in favour of trustees, can derive any greater or other benefit from a judgnrrent or order obtained by another beneficiary than he could have obtained if he had brOught such action or proceeding 8.nd the lapse of time had been pleaded. 'These provisions only apply to actions commenced after the 1st of January 1890, and do not deprive an executor or administrator of any right or defence to which he is entitled under any Statute of Limitations.