Sec. 34-517. Management of statutory trust.
Sec. 34-517. Management of statutory trust. (a) Except to the extent otherwise
provided in the governing instrument of the statutory trust, the business and affairs of
a statutory trust shall be managed by or under the direction of its trustees. To the extent
provided in the governing instrument of a statutory trust, any person, including a beneficial owner, shall be entitled to direct the trustees or other persons in the management
of a statutory trust. Except to the extent otherwise provided in the governing instrument
of a statutory trust, neither the power to give direction to a trustee or other persons nor
the exercise thereof by any person, including a beneficial owner, shall cause such person
to be a trustee.
(b) A governing instrument may contain any provision relating to the management
of the business and affairs of the statutory trust, and the rights, duties and obligations
of the trustees, beneficial owners and other persons, which is not contrary to any provision or requirement of sections 34-500 to 34-547, inclusive, and, without limitation:
(1) May provide for classes, groups or series of trustees or beneficial owners, or
classes, groups or series of beneficial interests, having such relative rights, powers and
duties as the governing instrument may provide, and may make provision for the future
creation in the manner provided in the governing instrument of additional classes, groups
or series of trustees, beneficial owners or beneficial interests, having such relative rights,
powers and duties as may from time to time be established, including rights, powers
and duties senior or subordinate to existing classes, groups or series of trustees, beneficial
owners or beneficial interests;
(2) May establish or provide for the establishment of designated series of trustees,
beneficial owners or beneficial interests having separate rights, powers or duties with
respect to specified property or obligations of the statutory trust or profits and losses
associated with specified property or obligations, and, to the extent provided in the
governing instrument, any such series may have a separate business purpose or investment objective;
(3) May provide for the taking of any action, including the amendment of the governing instrument, the accomplishment of a merger or consolidation, the appointment
of one or more trustees, the sale, lease, exchange, transfer, pledge or other disposition
of all or any part of the assets of the statutory trust or the assets of any series, or the
dissolution of the statutory trust, or may provide for the taking of any action to create
under the provisions of the governing instrument a class, group or series of beneficial
interests that was not previously outstanding, in any such case without the vote or approval of any particular trustee or beneficial owner, or class, group or series of trustees
or beneficial owners;
(4) May grant to, or withhold from, all or certain trustees or beneficial owners, or
a specified class, group or series of trustees or beneficial owners, the right to vote,
separately or with any or all other classes, groups or series of the trustees or beneficial
owners, on any matter, such voting being on a per capita, number, financial interest,
class group, series or any other basis;
(5) May, if and to the extent that voting rights are granted under the governing
instrument, set forth provisions relating to notice of the time, place or purpose of any
meeting at which any matter is to be voted on, waiver of any such notice, action by
consent without a meeting, the establishment of record dates, quorum requirements,
voting in person, by proxy or in any other manner, or any other matter with respect to
the exercise of any such right to vote;
(6) May provide for the present or future creation of more than one statutory trust,
including the creation of a future statutory trust to which all or any part of the assets,
liabilities, profits or losses of any existing statutory trust will be transferred, and for the
conversion of beneficial interests in an existing statutory trust, or series thereof, into
beneficial interests in the separate statutory trust, or series thereof; or
(7) May provide for the appointment, election or engagement, either as agents or
independent contractors of the statutory trust or as delegatees of the trustees, as officers,
employees, managers or other persons who may manage the business and affairs of the
statutory trust and may have such titles and such relative rights, powers and duties as
the governing instrument shall provide. Except to the extent otherwise provided in the
governing instrument of a statutory trust, the trustees shall choose and supervise such
officers, managers, employees and other persons.
(c) To the extent that, at law or in equity, a trustee has duties, including fiduciary
duties, and liabilities relating thereto to a statutory trust or to a beneficial owner:
(1) Any such trustee acting under a governing instrument shall not be liable to the
statutory trust or to any such beneficial owner for any act or omission taken in good
faith reliance on the provisions of such governing instrument; and
(2) The trustee's duties and liabilities may be expanded or restricted by provisions
in a governing instrument.
(d) To the extent that, at law or in equity, an officer, employee, manager or other
person designated pursuant to subdivision (7) of subsection (b) of this section has duties,
including fiduciary duties, and liabilities relating thereto to a statutory trust, a beneficial
owner or a trustee:
(1) Any such officer, employee, manager or other person acting under a governing
instrument shall not be liable to the statutory trust, any beneficial owner or any trustee
for any act or omission taken in good faith reliance on the provisions of such governing
instrument; and
(2) The duties and liabilities of an officer, employee, manager or other person acting
pursuant to subdivision (7) of subsection (b) of this section may be expanded or restricted
by provisions in a governing instrument.
(P.A. 96-271, S. 226, 254.)
History: P.A. 96-271 effective October 1, 1997.