11

8.—9.

A novel provision is that contained in subsection (2) of section 10 of the new Act, which provides, briefly, that on the sale of freehold land or leasehold properties held for unexpired terms of at least five hundred years the trustee or other competent parties may, in cases where the proceeds are to be invested, contract that any part of the purchase-money not exceeding two-thirds may remain on mortgage. The trustees are not bound to obtain any report as to the value of the property sold and subsequently forming the security of the mortgage, or any advice as to the making of the loan, and they are not liable for any loss incurred by reason only of the security being insufficient at the date of the mortgage. Share Investments. —Subsection (3) of the same section contains an important extension of trustees' powers in regard to share investments. There was some doubt formerly as to a trustee's power to accept new shares on the reconstruction of a company in cases where they were authorized to retain the shares. The matter is now placed beyond question by the statutory provision referred to, which empowers trustees in cases where the trust comprises stocks or shares of a company to concur in any scheme for the reconstruction, amalgamation, &c., of the company as if they were the beneficial owners of the stock or shares, and to exercise, renounce, or sell rights, and to subscribe for stocks or shares, in any new company which may be offered to them in respect of holdings in the old company. The exercise of the powers conferred is made subject to the consent of any person whose consent to a change of investment is required by the trust instrument or by law. Protection of Trustees in handing over the Trust Property.—A\\ additional protection to trustees in handing over the trust property to the persons entitled is made available by section 27 of the new statute. Thereunder trustees may secure exemption from liability in this respect by publishing certain advertisements announcing their intention to convey or distribute the trust fund to or among the persons entitled, and requiring persons interested to supply the trustees, within a period of not less than two months, with particulars of their claims in regard to the property covered by the notice. After the expiration of the time fixed by the notice the trustees may convey or distribute the property referred to in the notice to or among the persons entitled, having regard only to the claims of which they then have notice. The rights of persons affected to follow the trust property into the hands of other persons, save purchasers, who have received it are not affected. The section, it is important to note, overrides any provision contained in the will or trust instrument. It is interesting to compare this provision of the new Act with section 25 of the Public Trust Office Amendment Act, 1913, which is dealt with elsewhere in this report. There is a marked similarity between the two statutory provisions. Delegation of Powers by Trustees. —Prior to the new legislation the general rule was that a trustee could not delegate his duties or powers unless specifically authorized by the trust instrument or by statute. Exceptions were made only in cases where the trustee was obliged from necessity to delegate, the delegation was of a variety usual in the ordinary course of business, and the agent was employed within the ordinary scope of his business. The law upon this subject has been revolutionized by the provisions of the Trustee Act, 1925, and, in particular, sections 23 and 25 of that Act. The former section specifically authorizes the employment by trustees or personal representatives of agents of all descriptions for the transaction of business required in connection with the trust, or the administration of the estate, as the case may be, without rendering the trustee responsible for the agent's default. They may also appoint persons to deal with portions of the trust or estate property situated outside the United Kingdom. In addition, trustees are permitted in certain cases to appoint solicitors or bankers to receive and give discharges for moneys or property forming portion of the trust estate. A further important provision of the same character is that contained in section 25 of the Act, which permits a trustee to delegate the exercise of his trusts, powers, and discretions if he intends to remain outside Great Britain and Northern Ireland for a period exceeding one month. It is understood that this