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State the advantages of a trust deed.

      

State the advantages of a trust deed.

  

Answers


Kavungya
(a) The circumstances in which the principal sum may become repayable are clearly spelt out.
(b) The appointment of trustees facilitates the efficient administration of the trust since they
are there to exercise continuous supervision of the debenture holders’ rights and to take prompt action if the need arises.
(c) The trustees are empowered to appoint a receiver to carry on the business in case of urgency.
(d) Covenants are entered into by the company for insurance, repair and other matters, which can be enforced by the trustees.
(e) The trustees have a legal mortgage over the company’s land.
Kavungya answered the question on April 15, 2021 at 19:57


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