The need for legislative reform regarding the authorisation of trustees in the South African law of trusts

Abstract

English: According to section 6(1) of the Trust Property Control Act 57 of 1988, all trustees to whom the Act applies 'shall act in that capacity only if authorized thereto in writing by the Master' of the High Court. The requirement of written authorisation has, however, not been interpreted and applied by the South African judiciary in a consistent fashion, leading to uncertainty regarding the precise ambit of the section and the consequences of non-compliance therewith. This contribution analyses these inconsistencies and concludes that legislative intervention along the lines of pre-formation contracts as provided for in both company law and the law of close corporations may provide an adequate solution to the problems faced by both the parties to the trust and the outsiders who deal with them.

Afrikaans: Ingevolge artikel 6(1) van die Wet op die Beheer oor Trustgoed 57 van 1988 mag alle trustees op wie die Wet van toepassing is 'slegs indien deur die Meester [van die Hoe Hof] skriftelik daartoe gemagtig' in daardie hoedanigheid optree. Die feit dat die magtigingsvereiste tot op hede nie deur die Suid-Afrikaanse howe op 'n konsekwente manier uitgele en toegepas is nie, lei tot onsekerheid ten opsigte van die trefwydte en die gevolge van die nie-nakoming daarvan. Hierdie bydrae ontleed bogenoemde onkonsekwenthede en na aanleiding hiervan word daar voorgestel dat ingryping deur die wetgewer (welke voorgestelde ingryping op voor-inlywingskontrakte soos in die maatskappye- en beslote korporasiereg aangetref, gebaseer word) moontlik 'n doeltreffende oplossing mag bied.