Page 33 - Nexia SAB&T Trust Guide 2024

For example: where the “innocent trustee” is aware of a breach of trust by
co-trustees but does not report it, or where the “innocent trustee” improperly
allows trust funds to remain in the sole control of co-trustees.
Section 19 of the Trust Property Control Act states that if any trustee fails to
comply with a request by the Master in terms of Section 16, or to perform any
duty imposed upon him by the trust instrument or by law, the Master or any
person having an interest in the trust property, may apply to the court for an
order directing the trustee to comply with such request or to perform such duty.
Section 16 refers to the situation where the Master requests in writing that a
trustee shall account to the Master, to his satisfaction, and in accordance with
the Master’s requirements, for his administration and disposal of trust property
and to deliver to the Master any book, record, account or document relating to
his administration or disposal of the trust property, and shall, to the best of his
ability, answer honestly and truthfully any question put to him by the Master in
connection with the administration and disposal of the trust property.
The Master may, if he deems it necessary, cause an investigation to be carried
out by a fit and proper person appointed by him into the trustee’s administration
and disposal of trust property, and shall make such order as he deems fit in
connection with the costs of the investigation.
In addition, any person who feels aggrieved by an authorisation, appointment or
removal of a trustee by the Master or by any decision, order or direction of the
Master made or issued under the Trust Property Control Act, may apply to the
court for relief, and the court shall have the power to consider the merits of any
such matter, to take evidence and to make any order it deems fit.
Reporting of Irregularities by an Auditor of the trust
If an irregularity in connection with the administration of a trust comes to the
notice of a person who audits the accounts of a trust, such a person shall, if in
his opinion it is a material irregularity, report it in writing to the trustee /s, and
if such irregularity is not rectified to the satisfaction of such person within one
month as from the date upon which it was reported to the trustee /s, that person
shall report it in writing to the Master of the High Court.

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