Trustee

The trustee has the full authority to administer/manage trust fund assets. Any person with legal capacity may become a trustee. A legal entity may become a trustee only if the law explicitly allows this. The trustee is obliged to look after and increase fund assets and to fulfil the purpose of the fund. He/she can invest fund assets, but always within the scope of careful management and in light of any restrictions specified by the statute.The possibility of the founder or beneficiary of a trust fund (or other person affiliated therewith) becoming its trustee cannot be ruled out. If the trustee is simultaneously the founder or beneficiary, then the trust fund must also have another co-trustee, who is neither the founder nor a beneficiary, whereas both co-trustees must act together in this case.

The trustee is nominated and dismissed by the founder, unless stipulated otherwise in the statute. When negotiating with third parties, the trustee must present the document which nominated the trustee (usually the contract in which the trustee simultaneously accepts his/her nomination) and the statute (either to show that the trustee was nominated in compliance with the statute, or to show that the statute does not provide for any other means of nomination). Thus, we recommend specifying the conditions for the nomination of the trustee in the statute, at least via a written nomination document including the certified signature of the founder on the document, which should significantly reduce the risk of forgery of nomination documents.

Due to the fact that a trust fund does not have its own legal subjectivity, the trustee acts as a natural person, in his/her own name, when dealing with third parties. However, he/she acts on the trust fund’s account, and is thus not personally bound/liable for his/her actions in this position.