Trustee Powers Independent of Majority Vote of the Board

Trustee Powers Independent of Majority Vote of the Board

A Trustee may independently, without the majority vote of the Board of Trustees do the following: 

1. Receive property into the trust; 
2. Initiate a contract for services (provided notice is given to the Board of Trustees within 3 days); and 
3. Conduct the financial affairs of the Trust with respect to deposits, withdrawals, loans and escrow        arrangements.    

Issuance or revocation of any Beneficial Interest Certificates AND Capital Interest Certificates requires the majority vote of the Board of Trustees.   

Any modifications to the Trust may be done through the passing of Bylaws under majority vote of the Board. 

See Article VI. Powers of Trustee and Article VII. Trust Administration.

It should be noted that a Trustee of an Express Trust is afforded more authority in caring out the duties of the Trust than other Trustees.  As described in Carl Weiss' Concise Trustee Handbook: These powers include, but are in no way limited to—

 

  • The power to bind the trust in a contract, especially where such obligation is implied- by-law,65 and the power to contract with the beneficiary(s);

  • The power to partition, exchange, sell, pledge or mortgage the trust property, either in whole or in part;66

  • The power to lease trust property;67

  • The power to issue, change, or otherwise dispose of securities of the trust;

  • The power to support the beneficiary(s) in all reasonable manner;

  • The power to prosecute and defend in the trust’s name or trustee’s name;

  • The power to make gifts out of trust property;

  • The power to delegate all unessential powers and duties; and

  • The power to exercise personal judgment and every discretionary power not prohibited by the trust instrument.68 He may do whatever a man may lawfully do according to natural right.