LEGAL ASPECTS OF CORPORATE BUSSINESS *TOPIC : TRUST & SOCIETY* Name : Monika C. Charoliya Roll No. : 8th Class : M.com Sem – 2 Submitted To : Dr.Daxa P. Chauhan

What is a Trust ? A trust is a fiduciary relationship in which one party, known as a Testator / Settlor / Author, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. A "trust" is an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another or of another and the owner.

- The person who reposes or declares the confidence is ‘Author of the Trust’. - The person who accepts the confidence is called ‘Trustee’. - The person for whose benefit the confidence is accepted is called the ‘Beneficiary’. - The Subject matter of the Trust is called ‘Trust Property’ or ‘Trust Money’. - The Instrument, if any, by which the Trust is declared is called the ‘Instrument of the Trust’. The word ‘Confidence Reposed’ is key word for the formation of Trust, since the Trustee is bound to Held the Property for the Beneficiary and he cannot use the Property for his own benefit.

Creation of Trust – Drafting of Deed Information Required for Drafting of Trust Deed- Name of Settler/Author Details of Movable/Immovable property he wants to settle towards Corpus of the Trust Name of at least three prospective trustees (Settler can also be a Trustee ) Name of the Trust Address of the Registered Office of the Trust Main Objects of the Trust/other Objects Beneficiary details

Types of Trusts There are basically two types of Trusts – Private Trust and Public Trusts. Private Trusts are those which are meant for the benefit of identified, limited persons / entities. Public Trusts are those which are meant for the benefit of General Public at Large without the identification of its Beneficiaries.

Particulars Required to be furnished The designation by which the public trust is or shall be known (hereinafter referred to as the name of the public trust), (i)the names and addresses of the trustees and the manager, (ii)the mode of succession to the office of the trustee, (iii)the list of the moveable and immovable trust property and such descriptions and particulars as may be sufficient for the identification thereof, (iv)the approximate value of moveable and immovable property,

Continue. . . (v)the gross average annual income of the trust property estimated on the income of three years immediately preceding the date on which the application is made or of the period which has elapsed since the creation of the trust, whichever period is shorter, (vi)the amount of the average annual expenditure in connection with such public trust estimated on the expenditure incurred within the period to which the particulars under clause (v) relate, (vii)the address to which any communication to the trustee or manager in connection with the public trust may be sent, (viii)such other particulars which may be prescribed.

Formation of Society Under Rajasthan Societies Act Information Required for Formation of Society Names of at least Fifteen persons who wants to form the Society and agree to becomes subscriber to the Memorandum & By-laws of the Society. Names of seven prospective office bearers (including President, Secretary & Treasurer) of the Proposed Society. Proposed name of the Society (Norms apply). Address of the Registered Office. Main Objects of the Society.

Continue. . . Minimum 15 persons from 8 different States are required. Registration papers will have to be Submitted to the Office of the Registrar of Societies, Delhi. Other requirements are generally same as per Registration under Rajasthan Societies Act Mandatory in case of Society. Three Copies of Memorandum & By-laws of Proposed Society with Original Signature of all the Subscribers i.e. at least Fifteen Persons on Memorandum. Each Page shall be Signed by three Office Bearers. It shall be Witnessed by two Persons & shall be Notarized.

Registration u/s 12A & Grant of approval u/s 80G of the I.T. Act Documents Required- Application to CIT having Jurisdiction of address of Registered Office. Form No. 10A for application u/s 12AA. Form No. 10G for application u/s 80G. List of Trustees /List of Office bearers.

Continue. . . Copy of Trust Deed with copy of Registration Certificate, if any In Case of Society- copy of Memorandum & By-Laws with copy of Registration Certificate. Details of Main activity which has been undertaken or intended to be undertaken. Accounts made up to the date of application All documents to be filed in triplicate

Thank You . . .