Finance Act 1989

Trustees

3 (1) The trust deed must provide for the establishment of a body of trustees.

(2) The trust deed must—

(a) appoint the initial trustees;

(b) contain rules for the retirement and removal of trustees;

(c) contain rules for the appointment of replacement and additional trustees.

(3) The trust deed must provide that at any time while the trust subsists (the relevant time)—

(a) the number of trustees must not be less than three;

(b) all the trustees must be resident in the United Kingdom;

(c) the trustees must include one person who is a trust corporation, a solicitor, or a member of such other professional body as the Board may from time to time allow for the purposes of this paragraph;

(d) most of the trustees must be persons who are not and have never been directors of any company which falls within the founding company’s group at the relevant time;

(e) most of the trustees must be persons who are employees of companies which fall within the founding company’s group at the relevant time, and who do not have and have never had a material interest in any such company;

(f) the trustees falling within paragraph (e) above must, before being appointed as trustees, have been selected by a majority of the employees of the companies falling within the founding company’s group at the time of the selection or by persons elected to represent those employees.

(4) For the purposes of sub-paragraph (3) above a company falls within the founding company’s group at a particular time if—

(a) it is the founding company, or

(b) it is at that time resident in the United Kingdom and controlled by the founding company.