Charities Act, 1973
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Further provisions as to schemes under section 2. |
3.—(1) A scheme under section 2 establishing a body corporate shall, without further assurance but subject where necessary to transfer in the books of any bank, corporation or company, and in the case of registered land, compliance with subsection (2), on the trusts which apply to the charity, vest in the body corporate, on and from the date specified therein as that on which the scheme is to come into operation (in this section referred to as the operative date), for all the estate, term or interest for which immediately before the operative date it was held in trust for the charity, the property of the charity together with all rights and liabilities enjoyed or incurred in connection therewith by the person or persons who immediately before the operative date held the property in trust for the charity. | |
(2) Where any land of which the ownership is registered under the Registration of Title Act, 1964 , becomes vested by a scheme under this section, the registering authority under that Act shall, upon production of a copy under the seal of the Board of the scheme and upon payment of the appropriate fee, register the body corporate established by the scheme in the appropriate register maintained under that Act as owner (within the meaning of that Act) of the land. | ||
(3) Where a scheme is framed under section 2— | ||
(a) all property transferred by the scheme which immediately before the operative date was standing or registered in the books of any bank, corporation or company or was entered in any register kept in pursuance of any enactment shall, on request made by or on behalf of the body corporate established by the scheme, be transferred into the name of that body; | ||
(b) all debts and liabilities duly incurred by the trustees of the charity to which the scheme relates in connection with the property of such charity or the administration of the trusts applying to such charity and which, immediately before the operative date, were owing and unpaid or were so incurred and were undischarged by the trustees shall, on the operative date, become and be the debts and liabilities of the body corporate established by the scheme and shall be paid or discharged by and may be recovered from and enforced against that body accordingly; | ||
(c) all agreements duly made in connection with the property of such charity or the administration of the trusts aforesaid and not fully executed or completed before the operative date shall continue in force and shall be construed and have effect as if the agreements had been made by the body corporate established by the scheme; and | ||
(d) in every action, or other legal proceeding, other than proceedings for an alleged offence or proceedings in relation to an alleged breach of trust, in respect of the property of such charity or arising on or in connection with the administration of the trusts aforesaid which was pending immediately before the operative date and to which the trustees aforesaid are a party, the body corporate established by the scheme shall be substituted as a party in place of such trustees and the proceedings shall continue accordingly. | ||
(4) Every member of a body incorporated by virtue of a scheme under section 2 shall, notwithstanding the incorporation, | ||
(a) be chargeable for property coming into his hands as such a member, and | ||
(b) as regards the charity to which the scheme relates, be accountable and liable for his own acts or omissions and for the due administration of the charity and its property, | ||
in the same manner as if the scheme had not been framed and he had been duly appointed to be a trustee of the charity. |