Please guide me that, what is the procedure of winding-up a private discretionary trust of a company, which was created for undertaking the welfare activities for the staff of settlor company. The trust is having only FDR's and interest on FDR's is the only source of income for the trust. Trust is not performing any activity since last so many years.
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Query in relation to trust
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As per section 77 of the Indian Trust Act,1882, a trust may be extinguished or terminated if “its purpose becomes unlawful”. However, when a public charitable trust is properly and completely constituted, it becomes irrevocable, even though it is voluntary. Accordingly, there is no provision under the various Public Trusts Acts to legally terminate or dissolve a valid public charitable trust. However, the assets and liabilities of the trust can be transferred to another charitable trust having similar objects thereby the former trust can be dissolved. But a revocable trust can be dissolved as per the terms and conditions of the trus
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