Formation of Trust for ESOP Scheme
This query is : Resolved
25 April 2008
Can anyone tell me where to get the Trust registered formed for the Benefit of the employees.
We have formed a Employee Benefit Trust purely for the purpose of providing ESOP to employees. The beneficiaries are all present n future employees.
So, according to me this is a Private Trust and Indian Trust Act is applicable to it.
Can anyone tell me where do we get this trust registered.
We have formed a Employee Benefit Trust purely for the purpose of providing ESOP to employees. The beneficiaries are all present n future employees.
So, according to me this is a Private Trust and Indian Trust Act is applicable to it.
Can anyone tell me where do we get this trust registered.
26 October 2009
How to form a `Trust'?
a) A trust can be formed as per Section 4 of Indian Trust Act 1982 for a lawful purpose;
b) A trust should have a document written and signed by trustees or a sole trustee;
c) A trust can be formed through a will also;
There is no definite form to create a trust. Objectives of the trustee should be clear and unambiguous;
a) A trust can be formed as per Section 4 of Indian Trust Act 1982 for a lawful purpose;
b) A trust should have a document written and signed by trustees or a sole trustee;
c) A trust can be formed through a will also;
There is no definite form to create a trust. Objectives of the trustee should be clear and unambiguous;
26 October 2009
What are the purposes for which a trust can be formed?
Trust cannot be formed for the following purposes under Sec.4 of the Act:
a) Unlawful purposes;
b) Against provisions of Indian Trusts Act 1932 rules made there under;
c) If there are provisions for cheating etc. in the trust;
d) If the trust is intended to cause loss or damage to one's property
Who can form a trust?
The following can form a trust under Sec.7 of the Indian Trusts Act 1882:
a) A person capable of making contract can form a trust;
b) Trust can be formed on behalf of minor with permission of Civil Court.
Trust cannot be formed for the following purposes under Sec.4 of the Act:
a) Unlawful purposes;
b) Against provisions of Indian Trusts Act 1932 rules made there under;
c) If there are provisions for cheating etc. in the trust;
d) If the trust is intended to cause loss or damage to one's property
Who can form a trust?
The following can form a trust under Sec.7 of the Indian Trusts Act 1882:
a) A person capable of making contract can form a trust;
b) Trust can be formed on behalf of minor with permission of Civil Court.
26 October 2009
What is the stamp duty to be paid for a trust deed?
1. Rs.500/- if only money is contributed by the author of trust or if immovable property is convyed where in the author remains as the sole trustee.
2. Same duty as conveyance if the immovable property is conveyed and the author is not a trustee or a sole trustee.
What is the fee for registration of trust deed?
As per Article III of table of fees under Karnataka Registration Rules 1965, fee shall be paid at 1 percent on the total of value shown by the trustee or value of movable or immovable property shown in the trust deed.
1. Rs.500/- if only money is contributed by the author of trust or if immovable property is convyed where in the author remains as the sole trustee.
2. Same duty as conveyance if the immovable property is conveyed and the author is not a trustee or a sole trustee.
What is the fee for registration of trust deed?
As per Article III of table of fees under Karnataka Registration Rules 1965, fee shall be paid at 1 percent on the total of value shown by the trustee or value of movable or immovable property shown in the trust deed.
26 October 2009
Can a trust be cancelled?
A trust can be cancelled on the following grounds as per Sec. 78 of The Indian Trust Act 1882:
a) Trust can be cancelled at the will of the trustees;
b) Trust can be cancelled if there is provision for cancellation in the deed.
c) If author of a trust creates trust for the purpose of repayment of his debt and if this is nor informed to the creditor author can cancel the trust.
Can the defects in the trust be cured by amendment?
Yes, amendment can be made a rectification or supplementary deed.
A trust can be cancelled on the following grounds as per Sec. 78 of The Indian Trust Act 1882:
a) Trust can be cancelled at the will of the trustees;
b) Trust can be cancelled if there is provision for cancellation in the deed.
c) If author of a trust creates trust for the purpose of repayment of his debt and if this is nor informed to the creditor author can cancel the trust.
Can the defects in the trust be cured by amendment?
Yes, amendment can be made a rectification or supplementary deed.
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