Trust Deed Provident Fund Deeds Trust 1715 - Legal Draft

......(hereinafter called the company) of the one part and AB, CD and EF all are residing at    and/or working for gain at (hereinafter called the trustees) of the other part.
Whereas the company intends to create a Provident Fund for the benefit of the employees and whereas it is necessary to execute a declaration of trust in respect of the contribution of the company and of the contributories to the fund.
This deed witnesses and it is hereby agreed and declared as follows:
1. That the above-named persons, viz., (1) AB (2) CD and (3) EF are hereby appointed as the trustees for administering the Provident Fund of the COMPANY and the income thereof as provided in the rules in force for the time being.
2. That the trustees shall stand possessed of the existing fund as also all contributions made in future from time to time with all accumulations to the said fund upon trust for the benefit of the employees of the company according to the rules of the fund a copy whereof is attached hereto.
3. That this trust shall not be revocable except with the consent of all contributories to the fund.
4. That the money for the time being constituting the fund shall be invested by the trustees in any one or more of the following securities:
(a) In promissory notes, debentures, stock or other securities of any local Government or of the Government of India.
(b) In bonds, debentures and annuities charged on the revenues of India.
In stock or debentures of, or shares in, Government and other companies the interest whereon shall have been guaranteed by the Government of India.
In debentures or other securities for money issued, under the authority of any Central Act or Act of a Legislature established in the States of India, by or on behalf of any Municipal Body, Port Trust or City Improvement Trust in any Presidency town.
On a first mortgage of immovable property situate in the States of India: Provided that the property is not a leasehold for a term of years and that the value of the property exceeds by one-third, or, if consisting of buildings, exceeds by one-half of the mortgage money.
5. Provided that in execution of the trust and in performance of his duties and powers hereunder conferred no trustee shall be made liable for any loss caused to the trust arising by reason of any improper investment made bona fide and in good faith or for the negligence or fraud of any agent employed by them or by reason of any error of judgment or act, default, mistake or omission done in good faith and under bona fide belief by any trustee or by reason of any other matter or thing except wilful and individual wrong or fraud on the part of the trustee who is sought to be made liable.
6. The trustees shall be appointed by the company, and shall administer the fund and the income thereof as provided in the rules for the time being in force.
7. The number of trustees shall be not less than three nor more than seven.
A trustee shall continue in office until he dies or becomes insolvent or is removed or withdrawn by the company, from the trust or resigns his office as trustee, and upon the happening of any such event the COMPANY may nominate and appoint a successor who shall thereupon be and become a trustee in the place of such trustee so ceasing to be a trustee. On the appointment of a new trustee or new trustees, the number of trustees may be increased notwithstanding that there shall be no vacancy. The company shall not be bound to fill a vacancy in the number of trustees provided that the number of trustees shall not be reduced to less than three. The company may, in its absolute discretion, appoint an additional trustee or trustees notwithstanding that no case for appointing a new trustee may exist to be a trustee or trustees of the fund jointly with the continuing trustees.
8. The trustees shall at each meeting of the TRUSTEES elect one of the TRUSTEES present to be Chairman of the meeting. Questions arising at meetings of trustees shall be decided by a majority of votes and, in case of an equality of votes, the Chairman of the meeting shall have a casting vote.
9. Three of the TRUSTEES shall be a quorum. The TRUSTEES may from time to time by a resolution or resolutions under their signatures authorise any one or more of them to sign and endorse for transfer or for conversion or for payment, Government Promissory Notes, and Bonds, Treasury Bills and other securities-issued by the Government of the India or any State Government or by any Municipality or Improvement Trust or other local authority or any other securities held by the trustees or to sign or endorse
cheques, drafts, interest, warrants or receipts for interest.
The fund shall be exclusively managed and administered by the TRUSTEES in accordance with these rules, and the decision of the trustees upon any question relating to the fund or any rights or benefits in connection
therewith or generally upon the interpretation of any provision of these rules shall be absolutely final and binding on all subscribers, their executors, administrators, representatives, widows or relatives and the employers.
10 . The costs, charges and expenses of administering the fund and of the determination of any question arising under these rules or otherwise including expenses incurred by the trustees in the discharge of their duties shall be charged to the funds and may be properly paid therefrom from time to time.
Any decision of the trustees may be given under the hand of any one or more of them.
11 . The trustees shall have power to employ any person or persons (including any one or more of their number) to do any secretarial, legal, accountancy or other work which they may consider necessary or expedient in connection with the management of the fund or the funds thereof and to pay in addition to all other proper disbursements all ordinary or reasonable charges out of the fund or the funds.
12 . Every subscriber shall subscribe to the fund at the rate of 10 per cent, of his monthly salary or wages and such percentage shall be deducted from his salary at the time of payment thereof and shall, as soon as practicable, be paid to the trustees who shall credit the same to the account of the employee in the books of the fund.
13. The company may at any time on three months' notice to the subscribers increase the rate of subscription up to but not exceeding 12 1/2 per cent, of their monthly salaries and on similar notice the company may reduce the rate of subscription, but not below 71/2 per cent of such monthly salaries. Provided nevertheless that the subscriptions of an employee in any year shall be a definite proportion of his salary for that year.
Subject to the previous approval by the Commissioner of Income-tax, the trustees shall, with the approval of the Board of Directors, be competent to vary, alter, omit, modify or add to the rules of the provident fund.
14. In the event of any vacancy by reason of resignation, death or otherwise in the office of a trustee, the company shall appoint a new trustee in the vacancy so caused. But the surviving trustees shall, notwithstanding such vacancy, be competent to administer the fund.
In witness whereof the parties above-named have hereunto affixed their seals and subscribed their names the day and the year first above-written.
Signed, sealed and delivered by
Mr, ........ pursuant to
Board Resolution dated  
of X Co. Ltd. in the presence of:
Signed, sealed and delivered by AB,
CD and EF the trustees as a token
of acceptance in the presence of: