| 1) |
A financial institution or nominee company, or director, member, partner, official, employee or agent of a financial institution or nominee company which administers trust property under any instrument or agreement may not cause such trust property to be invested otherwise than in a manner directed in, or required by, such instrument or agreement. |
[Section 4(1) amended by section 159(a) of Act No. 45 of 2013]
| 2) |
In the absence of a direction or requirement referred to in subsection (1), a financial institution or nominee company, or director, member, partner, official, employee or agent of the financial institution or nominee company, may not cause any trust property to be invested otherwise than in the name of – |
| a) |
the principal concerned; |
| b) |
the financial institution in its capacity as administrator, trustee, curator or agent; or |
[Section 4(2) amended by section 159(b) of Act No. 45 of 2013]
| a) |
Despite subsections (1) and (2)– |
| i) |
where the Memorandum of Incorporation of a company has a special condition under section 15(2) of the Companies Act which prohibits the registration of its shares or debentures in the name of – |
[Section 4(3)(a)(i) amended by section 159(c) of Act No. 45 of 2013]
| bb) |
a financial institution in its capacity as administrator, trustee or curator; or |
| ii) |
where such shares or debentures form part of trust property administered by a financial institution |
those shares or debentures must be registered in the name of a director, member, partner or manager of that financial institution.
| b) |
The director, member, partner or manager must hold those shares or debentures in a fiduciary capacity on behalf of the principal concerned. |
| c) |
Prior to the registration of any shares or debentures in the name of a director, member, partner or manager as contemplated in paragraph (a), the financial institution concerned must furnish security to the satisfaction of the Master of the High Court, if such security has not already been furnished in terms of the Trust Property Control Act, 1988 (Act No. 57 of 1988). |
| 4) |
A financial institution must keep trust property separate from assets belonging to that institution, and must in its books of account clearly indicate the trust property as being property belonging to a specified principal. |
| 5) |
Despite anything to the contrary in any law or the common law, trust property invested, held, kept in safe custody, controlled or administered by a financial institution or a nominee company under no circumstances forms part of the assets or funds of the financial institution or such nominee company. |
| 6) |
This section also applies in a case where a financial institution invests, holds, keeps in safe custody, controls, administers or alienates trust property under any instrument or agreement jointly with another person. |
National Small Business Act, 1996 (Act 102 of 1996)
