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CS Executive · Setting Up of Business, Industrial and Labour Laws · Non-Corporate Entities

A principal Civil Court is appointing a new trustee for a trust with several beneficiaries. Under the Indian Trusts Act, 1882, which consideration is NOT among the matters the Court must have regard to?

The seniority of the candidate as a chartered accountant is not a listed factor. Section 74 directs the Court to consider the author's wishes, the wishes of the person empowered to appoint, whether the appointment promotes or impedes the trust, and the interests of all beneficiaries.

  1. AThe wishes of the author of the trust expressed or inferred from the instrument
  2. BWhether the appointment will promote or impede the execution of the trust
  3. CThe interests of all beneficiaries where there are more than one
  4. DThe seniority of the candidate as a registered chartered accountantCorrect

Explanation

Section 74 requires regard to the author's wishes, the wishes of any person empowered to appoint, whether the appointment promotes or impedes execution of the trust, and the interests of all beneficiaries where more than one. Professional seniority of a candidate is not a listed factor, so that option is the one not required.

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