COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 87 Liability of trustees for debenture holders.

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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 87

Liability of trustees for debenture holders.

87.(1) Subject to sub-sections (2) to (4), any provision contained in a trust
deed for securing an issue of debentures, or in any contract with the holders
of debentures secured by a trust deed, shall be void in so far as it would
have the effect of exempting a trustee thereof from or indemnifying him
against liability for breach of trust where he fails to show the degree of
care and diligence required of him as trustee, having regard to the provisions
of the trust deed conferring on him any powers, authorities or discretions.

(2) Sub-section (1) shall not invalidate

(a)any release otherwise validly given in respect of anything done or omitted
to be done by a trustee before the giving of the release; or

(b)any provision enabling such a release to be given

(i)on the agreement thereto of a majority of not less than three-fourths in
value of the debenture holders present and voting in person or, where proxies
are permitted, by proxy at a meeting summoned for the purpose; and

(ii)either with respect to specific acts or omissions or on the trustee dying
or ceasing to act.

(3) Sub-section (1) shall not operate

(a)to invalidate any provision in force at the commencement of this Act so
long as any person then entitled to the benefit of that provision or
afterwards given the benefit thereof under sub-section (4) remains a trustee
of the deed in question; or

(b)to deprive any person of any exemption or right to be indemnified in
respect of anything done or omitted to be done by him while any such provision
was in force.

(4) While any trustee of a trust deed remains entitled to the benefit of a
provision saved by sub-section (3), the benefit of that provision may be given
either

(a)to all trustees of the deed, present and future; or

(b)to any named trustees or proposed trustees thereof;

Perpetual debentures.

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Northern Irish Legislation

COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 87