THE PUNJAB TRUST ACT 2020

Statement of Trust Act2020

It is necessary to revise and modify the law relating to trust and make provisions for the ancillary matters.

Definition of Trust:

Trust means a obligation annexed to owner ship of a property,and arising out of a confidence reposed in and accepted by transfre or declared and accepted by him for the benefit of another owner.

Definition of Specialized Trust:

collective investment schemes, collective investment vehicles, private funds, pension funds, real estate investment trust, exchange trade funds, private equity and venture capital funds, debt securities trusts, trusts relating to any security issued by the Federal or a Provincial Government through capital markets, provident funds, gratuity funds, superannuation funds, employee benefit trust or any other trust, administered by the regulator, notified by the Government in the Official Gazette.

 CREATION OF TRUST:

A trust may be created for any law full purpose.

REGISTRATION OF TRUST AND SPECIALIZED TRUST:

  • No trust shall be functional unless it is registered with the Director of Province under this act in such manner as may be prescribed.
  • All trusts created under the Trusts Act, 1882 (II of 1882) or registered under the Registration Act, 1908 (XVI of 1908) or under any other law for the time being in force shall get registered under subsection (1) within such time frame as may be notified by the Government.
  • A trust which fails to get registered under this section shall cease to function or operate in any manner, and necessary action shall be initiated against such trust under section 92 of this Act.
  • For specialized trust under this Act, the trustee shall provide to the Director a No Objection Certificate from the concerned regulator containing the prescribed information.
  •  Where the trustee provides the No Objection Certificate , it shall be deemed that the requirements for registration of trust have been fulfilled, and the Director shall register the specialized trust.
  • A specialized trust created prior to commencement of this Act shall be deemed to have been registered under section 15 of this Act.
  • (4) A specialized trust, which is deemed to have been registered under subsection (3), shall be issued a certificate of registration under section 16 of this Act.
  • A specialized trust which fails to fulfill the requirements of subsection (1) shall cease to function or operate in any manner, and necessary action shall be initiated  against such trust under section 92 of this act.

REGISTER OF TRUST:

The Director at Provincial level and Assistant commissioner at Tehsil level shall jointly maintain the register of trust.

DOCUMENTS REQUIRED TO REGISTER TRUST:

  • Application by author
  • Property paper
  • Details of trustee
  • Affidavit
  • Trust deed
  • Memorandum of association
  • Article of Association
  • Logo of trust
  • Forms of property /moveable or immovable.
  •  

A trust is extinguished:

  • When it’s purpose is completely fulfilled.
  • When Director considers and has  sufficient reasons to believe that the activities of the trust fall under section 17 of this act.
  • When fulfillment of its purpose became impossible.
  • When trust,being revocable, expressly revoked.
  • When it fails to comply the requirements of section 15 and 15/A of this act.