Dear members,
I would like to know, Is there a restriction in the maximum number of trustees in a trust? If yes, what is the maximum number of trustees a trust can have?
Thanks,
Satya Prakash Mishra
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There is no central law governing charitable trusts but many states have their own law governing trusts. The minimum and maximum number of trustees should be specified in the trust deed. A Trust needs a minimum of two members and there is no upper limit to the number of trustees and may be maintained considering directional and functional expediency.
Right to Association- Trust is fundamental. We decide ALL. Even Registration and all comes into picture when there is a dispute among members or dispute raised by others.So long there is no problem from within others cannot have any say. WE ARE SOVEREIGN SUBJECT TO OTHER LAWS LIKE INCOME TAX AND FCRA.
Thank you so much sir, I have acted in the similar manner. All I wanted was that the Trustees that have resigned today or removed today do not challenge it afterwards. Is there any mechanism by which name of all the new trustees get into the trust deed and for those who exit gets removed. As passing resolution and filing it as DAK also doesnt seem legally strong way to proceed
If you want the names of incoming and outgoing trustees to be reflected in the trust deed each time change is made than it will require amendment of the trust deed which is a cumbersome procedure. It will require fresh registration with the registrar each time which is not only time consuming but also involves cost. The minutes and resolution may be preserved as per rules so that the same may be produced when required to counter the challenge by any one.
Rahul,
What Mr Handa has said below I also corroborate. Further in case your Trust is registered in Maharashtra or Gujarat, you are required to submit return, including details of trusttes / office bearers on annual basis.
For Trust at least two trustees are required.
Thanks
Regards
Rakesh Goswami
I Head Finance & Operations
Dear Rakeshji,
Yes, technically a Trust requiures two persons, one a settlor and a trustee. However Indian Trust Act does not require any minimum no. of trustees.
rgds
Dear Friends,
I have seen some trusts with only one Managing trustee and run it for 17 years with accreditation, even from credibility alliance.
I don’t think that there is no maximum.
Mohan
CADRE- India
(Center for Action Development Research and Education in India)
Kurumathoor, Kuzhithurai, PO, Kanyakumari, Dist. Tamil Nadu. India. PIN. 629163
Mohan, if the Trust Deed defines Trustee as only one trustee, then it is possible. In case of Trusts, the Deed is the most important.
As per the rule 7 ,9,13 are the nos of board members .it depends on board . large board is not good to manage.
My related question on this is:- How to appoint a new Trustee, in case amendment is to be made in the Trust Deed, Do we have to get another deed registered.
Rahul, as long as number of trustees is within the limit as specified in the Trust Deed, then replacement, appointment, etc. can be done by passing resolutions in the Board meetings. However Trust Deed should give this power to the Board of Trustees.
Generally board members in a society or trustees in a Trust, both sometimes are called Trustees. However there are different rules for the two. In a scoiety normally minimum Board members would be seven, although maximum would generally be specified in the Society’s Byelaws. Thus for each Society it can be a different maximum number.
In case of Trusts, trustees have to be specified in the Trust Deed by name. Some Trust Deeds may specify minimum / maximum. Trustees can be appointed within these limits. However while there is no statutory limit on maximum number of Trustees, you may need to amend the Trust deed, if the number goes above what is referred on the Trust Deed.
Dear Mishraji,
There is no restriction on the number of Trustees. This is dictated by the bye laws of the Trust.
Thanks and regards,
B V Soma Sastry
The Trust Act mentions that there should be more than one Trustees. It does not mention about any maximum number. It could be fixed according to convenience.