The Complete 2004 Laws of Nigeria

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TRUSTEE INVESTMENTS ACT

ARRANGEMENT OF SECTIONS

SECTION

  1. Short title.
  2. Securities to which the Act applies.
  3. Securities in which trustee may invest.
  4. Cessation of authorisation of investment.
  5. Power to make regulations.

SCHEDULE

            TRUSTEE INVESTMENTS ACT

An Act to facilitate the investment of trust and other funds in Nigeria in locally-
issued securities, and for purposes connected therewith.

[1957 No. 16.]

[23rd May, 1957]

[Commencement.]

1. Short title

This Act may be cited as the Trustee Investments Act.

  1. Securities to which the Act applies
    (1)  This Act shall apply to-

       (a)        all securities hereafter created or issued by or on behalf of the Government of
the Federation;

            (b)        securities hereafter created or issued by or on behalf of the Government of a
State which are declared by the President by notice in the Federal Gazette to be
securities to which this Act applies;

              (c)       securities which are declared by the President by notice in the Federal Gazette 
to be securities to which this Act applies, being securities created or issued by
companies or corporations incorporated directly by an Act enacted by the National Assembly or
by a Law enacted by the House of Assembly of a State or by an Act or Law having effect as if it
were so enacted, which companies or corporations are specified in the Schedule hereto or which
may be added to such Schedule by the President by notification in the Federal Gazette;

[Schedule.]

                            (d)        debentures and fully paid-up shares of any company incorporated by and registered 
             under the Companies and Allied Matters Act (other than a private company within the meaning of that Act).

[Cap. C20.]

(2) The power conferred by the foregoing subsection shall not be exercisable unless,
at the time when it is proposed to exercise it-

       (a)              the nominal value of the fully paid-up shares issued by the company in
question is not less than one million naira; and

       (b)              the price of the debentures or shares of the class in question is quoted on the
Nigerian Stock Exchange; and

                            (c)              in the case of an investment in shares of a company, dividends have been paid
                    during each of the three calendar years immediately preceding the current year
                    on all the shares of the company issued when the dividends became due, and
                    the aggregate amount of the dividends paid during each of those years in respect of each share 
                    ranking for dividend throughout that year was not less than five per cent of the nominal val ue of the share.

(3) No investment shall be made in exercise of the power conferred by subsection (1) 
of this section if the investment would cause-

       (a)              the value of the part of the trust fund invested in the exercise of that power to
exceed one third of the total value of the fund; or

      (b)               the value of the part of the fund so invested in the shares and debentures of a
particular company to exceed one tenth of the total value of the fund; or

                           (c)          the value of the part of the fund so invested in the shares of a particular company to exceed one
                     twentieth of the total value of the fund.

(4) For the purposes of this section-

                       (a)       "share" includes stock, and "debenture" includes debenture stock;

       (b)      a trust fund shall consist of so much of the property (other than an interest in
expectancy) as is held by the trustee on trusts which, either as respects the objects of the
trust or the beneficiaries or their interests or the powers of the trustee, are not identical with
the trusts on which he holds other property;

       (c)         a valuation in writing of, or of a part of, a trust fund obtained by a trustee from
a person whom he reasonably believes to be competent to make it shall be
conclusive as to the value of that fund or part on the date of the valuation.

  1. Securities in which trustee may invest

(1) Without prejudice to the enabling provisions of any other law, a trustee may,
under the powers of this Act, invest in any of the securities specified or referred to in
section 2 of this Act.

(2) The power conferred by subsection (1) of this section shall be exercised according to
the discretion of the trustee, but subject to any consent or direction required by the
instrument, if any, creating the trust or by law with respect to the investment of the trust
funds.

  1. Cessation of authorisation of investment

A trustee shall not be liable for breach of trust by reason only of his continuing to
hold an investment which has at any time ceased to be an investment authorised by the
provisions of this Act.

  1. Power to make regulations

The Minister of the Government of the Federation responsible for finance may by
regulations provide for the application of this Act, subject to such additions, alterations or
omissions as may be specified by the regulations-

      (a)       in cases where a company is amalgamated with or acquired or controlled by or
has its business taken over by another company;

      (b)        in cases where shares are issued in place of the payment of the whole or part of
any dividend, and the regulations may make different provision for different circumstances.

SCHEDULE
[Section 2 (1) (c).] 

  1. The Nigerian Coal Corporation.
  2. The National Electric Power Authority.
  3. The Nigerian Ports Authority.
  4. The Nigerian Railway Corporation.

       

        SUBSIDIARY LEGISLATION 

           No Subsidiary Legislation