(1) The office
of the trustee shall be fallen vacant in any of the following
circumstances:
(a) If the person is not qualified to be a trustee,
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(b) If the person resigns from the office of a trustee,
(c) If the person dies or is dissolved or liquidated or
becomes insolvent in accordance with law,
(d) If, in the case of a body corporate, it is dissolved,
liquidated or becomes insolvent in accordance
with law,
(e) If a trust is established for a certain period and
such a period is completed,
(f) If the trustee is appointed for a certain tenure and
such a tenure is completed,
(g) If the trustee is removed by the trust founder or
court on the ground that he or she has embezzled
the trust property or has not taken a reasonable
care of such property.
(2) If the office of a trustee is fallen vacant pursuant to
sub-section (1), such an office shall be filled in accordance with the
procedures set forth in the memorandum of incorporation.
(3) If the office of trustee cannot be fulfilled pursuant to
sub-section (2), the beneficiary, if available, and the concerned
Local Level, if there is no beneficiary or the beneficiary cannot be
identified, shall make an application, accompanied by a list of
possible candidates, to the concerned District Court for the
appointment of a trustee.
(4) If an application is made for the appointment of trustee
pursuant to sub-section (3), the District Court shall appoint to the
office of trustee an appropriate person from the list of candidates
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provided by the applicant, in consonance with the spirit of the
memorandum of incorporation.
(5) If any trustee is relieved of his or her office by virtue
of the circumstance referred to in sub-section (1), he or she shall, as
promptly as possible, hand over the trust property in his or her
custody, control or use to other trustees, and he or she shall not get
immunity from any kind of liability or legal action for any act done
or action taken by him or her while in office of a trustee by the
reason only that he or she has been so relieved of office.
Provided that if all trustees are relieved of office, such
property shall be transferred after the appointment of another
trustee.
(6) If the office of a trustee of a public trust with only one
trustee falls vacant or is fulfilled pursuant to this Section,
information thereof shall be given to the registrar.