Singapore legislation

Clause 29

Liability of trustee-managers

(1)

Subject to subsection (2), any provision in a trust deed of a registered business trust required under section 28 or in any contract with the unitholders of a registered business trust to which such a trust deed relates shall be void in so far as it would have the effect of exempting the trustee-manager of the registered business trust under the trust deed from, or indemnifying the trustee-manager against, liability for breach of trust where the trustee-manager fails to exercise the degree of care and diligence required of a trustee-manager of a registered business trust.

(2)

Subsection (1) shall not invalidate —

(a)

any release otherwise validly given in respect of anything done or omitted to be done by the trustee-manager of a registered business trust before the giving of the release; or

(b)

any provision enabling such a release to be given —

(i)

on the passing of a special resolution by the unitholders of the registered business trust at a general meeting convened in accordance with Division 1 of Part IX; and

(ii)

either with respect to specific acts or omissions, or upon the trustee-manager of a registered business trust ceasing to act.

Read in full context — Business Trusts Bill →