(1) The
trustee shall operate and manage the trust property properly, by
exercising his or her capacity and diligence honestly.
(2) In the operation and management of the trust property
pursuant to sub-section (1), the trustee shall make arrangement to
avoid any loss and damage to, and maintain sustainability of, such
property.
(3) Except as otherwise provided for in the memorandum
of incorporation, in the operation and management of the trust
property pursuant to sub-sections (1) and (2), income earned from
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the trust property which is not required immediately to accomplish
the objects of trust may be invested for the accomplishment of the
objects of trust.
(4) Except as otherwise provided for in the memorandum
of incorporation, in making investment pursuant to sub-section (3),
it may be invested as follows, in the following proportion of the
total sum:
(a) At lest twenty-five percent in the purchase of bonds or
treasury bills issued by the Government of Nepal or
Nepal Rastra Bank or bonds guaranteed by the
Government of Nepal,
(b) Deposit of a maximum of twenty-five percent in a
fixed account with a commercial bank,
(c) Deposit of a maximum of ten percent in a fixed
account with a development bank,
(d) A maximum of five percent in the subscription of
ordinary shares of a commercial bank,
(e) Deposit of a maximum of ten percent in a fixed
account with a finance company,
(f) A maximum of five percent in the subscription of such
ordinary shares of an enlisted public limited company
as are dealt publicly.
(5) The trustee shall, from time to time, carry out
monitoring as to the investment made pursuant to sub-section (4),
and if it appears from such monitoring that the returns of
investment made in one sector be lesser, such investment shall be
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withdrawn immediately and made in another sector yielding more
returns, subject to the terms and restrictions of the investment.
(6) In making monitoring or investment pursuant to subsection
(5), opinion of an expert in the concerned sector may, as
required, be obtained.
(7) An opinion obtained pursuant to sub-section (6) may
be taken as the basis for monitoring or investment.
(8) The trustee shall maintain his or her personal property
and the trust property separately and operate and mange the trust
property accordingly, and in the event of a need to operate an
account, separate accounts shall be maintained.