Hong Kong Ordinances

TRUSTEE ORDINANCE - SECT 24

Reversionary interests, valuations, and audit

(1) Where trust property includes any share or interest in property not vested
in the trustees, or the proceeds of sale of any such property, or any other
thing in action, the trustees on the same falling into possession, or becoming
payable or transferable may-

   (a)  agree or ascertain the amount or value thereof or any part thereof in
        such manner as they may think fit;

   (b)  accept in or towards satisfaction thereof, at the market or current
        value, or upon any valuation or estimate of value which they may think
        fit, any authorized investments;

   (c)  allow any deductions for duties, costs, charges and expenses which
        they may think proper or reasonable;

   (d)  execute any release in respect of the premises so as effectually to
        discharge all accountable parties from all liability in respect of any
        matters coming within the scope of such release, without being
        responsible in any such case for any loss occasioned by any act or
        thing so done by them in good faith.

(2) The trustees shall not be under any obligation and shall not be chargeable
with any breach of trust by reason of any omission-

   (a)  to apply for any stop or other like order upon any securities or other
        property out of or on which such share or interest or other thing in
        action as aforesaid is derived, payable or charged; or

   (b)  to take any proceedings on account of any act, default, or neglect on
        the part of the persons in whom such securities or other property or
        any of them or any part thereof are for the time being, or had at any
        time been, vested, unless and until required in writing so to do by
        some person, or the guardian of some person, beneficially interested
        under the trust, and unless also due provision is made to their
        satisfaction for payment of the costs of any proceedings required to
        be taken: Provided that nothing in this subsection shall relieve the
        trustees of the obligation to get in and obtain payment or transfer of
        such share or interest or other thing in action on the same falling
        into possession.

(3) Trustees may, for the purpose of giving effect to the trust, or any of the
provisions of the instrument, if any, creating the trust or of any statute,
from time to time (by duly qualified agents) ascertain and fix the value of
any trust property in such manner as they think proper, and any valuation so
made in good faith shall be binding upon all persons interested under the
trust.

(4) Trustees may, in their absolute discretion, from time to time, but not
more than once in every year unless the nature of the trust or any special
dealings with the trust property make a more frequent exercise of the right
reasonable, cause the accounts of the trust property to be examined or audited
by an independent accountant, and shall, for that purpose, produce such
vouchers and give such information to him as he may require; and the costs of
such examination or audit, including the fee of the auditor, shall be paid out
of the capital or income of the trust property, or partly in one way and
partly in the other as the trustees, in their absolute discretion, think fit,
but, in default of any direction by the trustees to the contrary in any
special case, costs attributable to capital shall be borne by capital and
those attributable to income by income. [cf. 1925 c. 19 s. 22 U.K.]