Different powers of investment-trust laws and accounts , Financial Accounting

Assignment Help:

Powers of investment

1. Shares and debentures:  A trustee may:

  • Invest in bearer securities if these would otherwise be authorised;   
  • Acquiesce in an amalgamation or reconstruction; and
  • Take up or assign “rights” issues.

 

2. Not more than one-eighth of the value of trust fund or Shs.10,000, whichever is the greater, shall be invested in the securities of any one company or unit trust.

3. Mortgages: These are authorised under the Trustee Act if given in respect of freehold land or leasehold land with at least 40 years unexpiered; the trustee may lend up to two-thirds the value of the land as assessed by a competent surveyor or valuer.

4. Retention of securities:  A trustee is not liable simply for retaining an investment which has cease to be authorised; but he must review periodically – with advice – wider range.


Related Discussions:- Different powers of investment-trust laws and accounts

Trust accounts-breach of law-trusts accounts, TRUST ACCOUNTS (a) Obje...

TRUST ACCOUNTS (a) Object of trust accounts : To demonstrate that the trust funds have been applied in accordance with the trust instrument; To give details of tra

Exercise 4.3, prepair two adjusting entries

prepair two adjusting entries

Compensation, how to treat salary compensation given to an employee how to ...

how to treat salary compensation given to an employee how to show this in company account

Show benefits of factoring, Q. Show benefits of factoring? Factor fina...

Q. Show benefits of factoring? Factor finance The factoring company will progress up to 80% of the face value of invoices raised. This would permit Doe Ltd to pay its trad

Conditions of a will-executorship laws and accounts, Conditions of a will ...

Conditions of a will A written will is not valid unless it fulfills the following conditions. 1) The testator must sign the will; or he must affix his mark to the will (i.e. a

Determine mutually exclusive projects - profitability index, 1. What is the...

1. What is the internal rate of return for a project that has a net investment of $150,000 and net cash flows of $40,000 for 5 years? 2. Using the profitability index, which of

Accounting changes can affect the financial statement, Various types of acc...

Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material

Inter company balances-group accounts, Inter Company balances One of th...

Inter Company balances One of the companies may appear as receivable (debtor) or payable (creditor) in the other company’s books. Just like in accounting four branches, such in

What are junk bonds, Q. What are Junk Bonds? Junk Bonds - DEBT SECURITI...

Q. What are Junk Bonds? Junk Bonds - DEBT SECURITIES issued by companies with higher than normal credit risk. Considered ‘non-investment grade' bonds, these SECURITIES ordinari

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd