EXAMPLES OF THE POWERS OF A PROTECTOR

The powers of the Protector can be dispositive or administrative and be positive or negative

Dispositive

> Decisions on distributions to beneficiaries - how much and when

Administrative

> Decisions relating to the administration and management of trust property
> Power to appoint or remove trustees
> Power to approve trustees' remuneration

Negative

> To be required to give Trustees consent to conduct a proposed transaction (power of veto)

Dispositive

> To instruct the Trustees to conduct a proposed transaction
> Power to make or approve additions to or exclusions from the class of potential beneficiaries
> Power to approve self -dealing by trustees
> Power to make or approve investments(or to make and approve the appointment of investment advisers)
> Power to veto the exercise of the settlors reserved powers
> Power to veto the exercise by the beneficiaries of any of their rights as beneficiaries
> Power to give or obtain tax advice
> Power to undertake regular reviews of the trust administration
> Power to nominate auditors
> Power to approve trustee accounts
> Power to settle questions or disputes concerning the administration of the trust
> Power to change the governing laws of the trust and/or trigger flight arrangements
> Power to terminate the trust



DUTIES OF THE PROTECTOR

The powers of the protector are permissive rather than mandatory. The protector exercises his powers as and when he sees fit. He must comply with the express terms of the powers conferred upon him. He must act honestly and in the best interests of the beneficiaries, for the protection of trust assets and the fulfilment of the proper purpose of the trust.

In turn the protector may require protection by an express exoneration clause in the trust deed .(" an indemnity")


RIGHTS OF THE PROTECTOR

> To receive trust accounts and to review trust documents and records in the custody of the trustees
> To hire agents such as lawyers, accountants and tax advisers and to review and charge their costs as an expense of the trust
> To receive reasonable remuneration , as an expenses of the trust
> To receive suitable indemnities against any claims arsing from the proper exercise of his office
> To select investment agents (if determined in the trust deed ).