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Liability of trustees under authorised unit trust schemes.
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14.—(1) Any provision in the trust deed of an authorised unit trust scheme shall be void in so far as it would have the effect of exempting the trustee under the scheme from, or indemnifying him against, liability for breach of trust where, having regard to the provisions of the trust deed conferring on him any powers, authorities or discretions, he fails to show the degree of care and diligence required of him as trustee.
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(2) Subsection (1) shall not invalidate—
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(a) any release otherwise validly given in respect of anything done or omitted to be done by a trustee before the giving of the release; or
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(b) any provision enabling such a release to be given—
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(i) on the agreement thereto of a majority of unit-holders holding not less than 75 per cent. in value of the units in issue of the unit trust scheme concerned present and voting in person or, where proxies are permitted, by proxy at a meeting summoned for the purpose, and
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(ii) either with respect to specific acts or omissions or on the trustee dying or ceasing to act.
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(3) Subsection (1) shall not operate—
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(a) to invalidate any provision in force on the 15th day of June, 1973, so long as any person then entitled to the benefit of that provision or afterwards given the benefit thereof under subsection (4) remains a trustee of the deed in question; or
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(b) to deprive any person of any exemption or right to be indemnified in respect of anything done or omitted to be done by him while any such provision was in force.
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(4) While any trustee of a trust deed remains entitled to the benefit of a provision saved by subsection (3), the benefit of that provision may be given either—
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(a) to all trustees of the deed, present and future; or
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(b) to any named trustee or proposed trustees thereof;
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by a resolution passed by a majority of unit-holders holding not less than 75 per cent. in value of the units in issue of the unit trust scheme concerned present in person or, where proxies are permitted, by proxy at a meeting summoned for the purpose in accordance with the provisions of the deed or, if the deed makes no provision for summoning meetings, a meeting summoned for the purpose in any manner approved by the High Court.
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