New South Wales Consolidated Acts

TRUSTEE ACT 1925 - SECT 22

22 New shares in a company

(1) Where a preferential right to subscribe for a security in a company is offered to a trustee in respect of any holding in the company, the trustee may--

(a) exercise the right and apply capital money subject to the trust in payment of the consideration, or

(b) renounce the right, or

(c) assign the benefit of the right for the best consideration that can reasonably be obtained to any person, including a beneficiary under the trust.

(2) Where a trustee assigns the benefit of the right the consideration received by the trustee for the assignment shall be held as capital money of the trust.

(2A) In any case in which the preferential right in subsection (1) referred to is offered to the trustee, the trustee may in any case in which the shares the subject-matter of the right are subject to a special or reserve liability, whether under the provisions of section 254N of the Corporations Act 2001 of the Commonwealth or otherwise, in the event of the winding-up of the company exercise the right and hold the said shares as if they were part of the trustee's original holding in the company.

(3) The trustee shall not be responsible for any loss occasioned by any act or thing so done in good faith.

(4) The powers conferred by this section shall be exercisable subject to the consent of any person whose consent to a change of investment is required by law or by the instrument, if any, creating the trust.

(5) This section applies only if and as far as a contrary intention is not expressed in the instrument, if any, creating the trust, and shall have effect subject to the terms of that instrument and to the provisions therein contained.

(6) This section applies to trusts created either before or after the commencement of this Act.