Acts and Regulations

2015, c.21 - Trustees Act

Section 20
Disposition versions

Full text
Removal of unsuitable trustee
20(1)A person is unsuitable to remain in office as a trustee if
(a) the person
(i) fails to demonstrate the care, diligence and skill that a person of ordinary prudence would exercise in dealing with the property of another person,
(ii) consistently fails to respond to communications from a beneficiary or another trustee, or
(iii) is otherwise unwilling or unable, or unreasonably refuses, to act cooperatively with other trustees, and
(b) the person’s conduct is detrimental to the efficient or proper administration of the trust.
20(2)If there are three or more trustees and the suitability of a trustee to remain in office is questioned, a majority of the other trustees may determine that the trustee is unsuitable to remain in office and may remove that trustee from office by a written resolution setting out the reasons for the removal.
20(3)A resolution under subsection (2) is effective,
(a) if the trustee that is the subject of the resolution does not request a meeting under subsection (4), 15 days after a copy of the resolution is delivered to that trustee, or
(b) if the trustee that is the subject of the resolution requests a meeting under subsection (4), at the conclusion of the meeting, unless the resolution is rescinded.
20(4)Within the 15-day period after a copy of the resolution is delivered to the trustee that is the subject of the resolution, that trustee may deliver to the other trustees a written request for a meeting with them to respond to the reasons set out in the resolution.
20(5)A meeting requested under subsection (4) shall take place as soon as practicable.
20(6)After the trustee responds to the reasons set out in the resolution, the other trustees may rescind or confirm the resolution.
Removal of unsuitable trustee
20(1)A person is unsuitable to remain in office as a trustee if
(a) the person
(i) fails to demonstrate the care, diligence and skill that a person of ordinary prudence would exercise in dealing with the property of another person,
(ii) consistently fails to respond to communications from a beneficiary or another trustee, or
(iii) is otherwise unwilling or unable, or unreasonably refuses, to act cooperatively with other trustees, and
(b) the person’s conduct is detrimental to the efficient or proper administration of the trust.
20(2)If there are three or more trustees and the suitability of a trustee to remain in office is questioned, a majority of the other trustees may determine that the trustee is unsuitable to remain in office and may remove that trustee from office by a written resolution setting out the reasons for the removal.
20(3)A resolution under subsection (2) is effective,
(a) if the trustee that is the subject of the resolution does not request a meeting under subsection (4), 15 days after a copy of the resolution is delivered to that trustee, or
(b) if the trustee that is the subject of the resolution requests a meeting under subsection (4), at the conclusion of the meeting, unless the resolution is rescinded.
20(4)Within the 15-day period after a copy of the resolution is delivered to the trustee that is the subject of the resolution, that trustee may deliver to the other trustees a written request for a meeting with them to respond to the reasons set out in the resolution.
20(5)A meeting requested under subsection (4) shall take place as soon as practicable.
20(6)After the trustee responds to the reasons set out in the resolution, the other trustees may rescind or confirm the resolution.