Singapore legislation
Section 22
Section 22
Investigation and audit of trust accounts
(1)
Subject to rules made under this Act and unless the court orders otherwise, on an application made and notice thereof given in the prescribed manner by any trustee or beneficiary, the condition and accounts of any trust are to be investigated and audited by a solicitor or public accountant agreed on by the applicant and the trustees or, in default of agreement, by the Public Trustee or a person appointed by the Public Trustee.
(2)
Except with the leave of the court no investigation or audit may be applied for under subsection (1) within 12 months after any such previous investigation or audit, and a trustee or beneficiary must not be appointed under this section to make an investigation or audit.
(3)
The person making the investigation or audit (called the auditor) has a right of access to the books, accounts and vouchers of the trustees, and to any securities and documents of title held by them on account of the trust, and may require from them such information and explanation as are necessary for the performance of the auditor’s duties.
(4)
Upon the completion of the investigation and audit, the auditor must forward to the applicant and every trustee —
a copy of the accounts, together with a report thereon; and (b)a certificate signed by the auditor to the effect (as the case may be) that the accounts exhibit a true view of the state of the affairs of the trust and that the securities of the trust fund investments have been produced to and verified by the auditor, or that the accounts are deficient in such respects as are specified in the certificate.
(5)
Every beneficiary under the trust is, subject to rules made under this Act, entitled at all reasonable times to inspect and take copies of the accounts, report and certificate, and, at his or her own expense, to be furnished with copies thereof or extracts therefrom.
(6)
The auditor may be removed by order of the court, and, if any auditor is removed, or resigns, or dies, or becomes bankrupt or incapable of acting before the investigation and audit is completed, a new auditor may be appointed in the auditor’s place in like manner as the original auditor.
(7)
The auditor’s remuneration and the other expenses of the investigation and audit are such as are prescribed and, unless the Public Trustee directs otherwise, are to be borne by the estate.
(8)
In the event of the Public Trustee so directing, he or she may order such expenses to be borne by the applicant or by the trustees personally or partly by them and partly by the applicant.
(9)
If any person having the custody of any documents to which the auditor has a right of access under this section fails or refuses to allow the auditor to have access thereto or in any way obstructs the investigation or audit, the auditor may apply to the court, and thereupon the court may make such order as it thinks fit.
(10)
Any person who wilfully makes, in any statement of accounts, report or certificate required for the purposes of this section, a statement that is false in any material particular shall be guilty of an offence and shall be liable on conviction to a fine or to imprisonment for a term not exceeding 2 years or to both.