Accountancy Forum
Powers and liabilities of trustees.. Sec 119(2) - Printable Version

+- Accountancy Forum (http://www.accountancy.com.pk/forum)
+-- Forum: The Profession (/forumdisplay.php?fid=4)
+--- Forum: Corporate Governance (/forumdisplay.php?fid=10)
+--- Thread: Powers and liabilities of trustees.. Sec 119(2) (/showthread.php?tid=9983)



Powers and liabilities of trustees.. Sec 119(2) - bilalfca - 06-15-2011 05:02 PM

salam to all

what does Sec 119(2) means

quote

"where a suit is brought under clause (a) or clause (b) of sub-section (!) the court may at its discretion stay the suit and all the proceedings therein notwithstanding any contract to the contrary, until the trustee has exhausted all his available remedies against the mortgaged property or what remains of it unless the trustee abandons his security and, if necessary, re-transfers the mortgaged property"

unquoted


- Ali Akbar - 06-18-2011 06:32 AM

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by bilalfca</i>
<br />salam to all

what does Sec 119(2) means

quote

"where a suit is brought under clause (a) or clause (b) of sub-section (!) the court may at its discretion stay the suit and all the proceedings therein notwithstanding any contract to the contrary, until the trustee has exhausted all his available remedies against the mortgaged property or what remains of it unless the trustee abandons his security and, if necessary, re-transfers the mortgaged property"

unquoted
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Hi,

In my view, since under section 119 trustee has both power and 'liability' to save interest of debenture holder, the court may, if consider it necessary, issue an (interim) order requiring trustee to discharge his 'full obligation' to perform services (saving interest of debenture holder) before involving court to do so. It also gives impression that the trustee shall use power to involve court as a last resort and before applying for sue, trustee shall ensure that he has made his every effort to save interest but no success!

I hope it clarifies.


- bilalfca - 06-20-2011 08:44 PM

salam

u clarified me alot...

one more quest. what is meant by (unless the trustee abandons his security and, if necessary, retransfers the mortgaged property) this in this sub-sec?


- Ali Akbar - 06-23-2011 07:58 AM

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by bilalfca</i>
<br />salam

u clarified me alot...

one more quest. what is meant by (unless the trustee abandons his security and, if necessary, retransfers the mortgaged property) this in this sub-sec?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

This means that if the trustee has given up!