Article 22 – Purpose Trusts
Trust will not be invalid by reason of Article 20(2)(C) if the Terms of the Trust provide for the appointment of an Enforcer in relation to its purposes and for the appointment of a new Enforcer at any time when there is none.
(2) Subject to Article 22(1), a
Trust may be declared by Trust Instrument for a non-charitable purpose, including the purpose of holding or investing in shares in any Person or any other assets constituting the Trust Property, if:
(A) the purpose is possible and sufficiently certain to allow the
Trust to be carried out;
(B) the purpose is not contrary to public policy or unlawful under the laws of the
Trust Instrument specifies the event upon the happening of which the Trust terminates and provides for the disposition of surplus assets of the Trust upon its termination.
(3) It is the duty of an
Enforcer to take reasonable steps to ensure that the Trust is enforced in relation to its purposes.
(4) The appointment of a
Person as Enforcer of a Trust in relation to its purposes will not have effect if it is also a Trustee of the Trust or has a conflict of interest.
(5) Except as permitted by these
Regulations or expressly provided by the Terms of the Trust, or with the approval of the QFC Court an Enforcer must not:
(A) directly or indirectly profit from its appointment;
(B) cause or permit any other
Person to profit directly or indirectly from such appointment; or
(C) on its own account, enter into any transaction with the
Trustees or relating to the Trust Property which may result in profit to it or the Trustee.
(6) Subject to Article 22(7), an
Enforcer may resign its office by notice in writing delivered to the Trustee. Such resignation will take effect upon delivery of notice.
(7) A resignation given in order to facilitate a breach of trust will be of no effect.
Enforcer will cease to be an Enforcer of the Trust in relation to its purposes immediately upon:
Enforcer's removal from office by the QFC Court;
Enforcer's resignation becoming effective;
(C) the coming into effect of a provision in the Terms of the
Trust under which the Enforcer is removed from office or otherwise ceases to hold office; or
Enforcer's appointment as a Trustee of the Trust.
(9) Where required, a
Trustee must at any time when there is no Enforcer, take such steps as may be necessary to secure the appointment of a new Enforcer.
(10) Where the
Trustee has reason to believe that the Enforcer in relation to such purposes is unwilling or refuses to act, or is unfit to act or incapable of acting, the Trustee must apply to the QFC Court for the removal of the Enforcer and the appointment of a replacement.
Trustee must apply to the QFC Court for the appointment of a new Enforcer where such an appointment is not possible under the Trust Instrument or the Enforcer is unwilling or refuses to act within 30 days of becoming aware there is no Person willing and able to act as the Enforcer.
(12) If the
Trustee does not make an application in accordance with Article 22(11), the Trustee will contravene a relevant requirement.
|Amended (as from 24th December 2017).|