Programme: Cohort:

BSc (Hons) Banking and BBIF/11/PT Aug,

International Finance BBIF/12/FT (Jan 12)
Examinations for 2013 - 2014 Semester I/2013
Semester II
MODULE: ADMINISTRATION AND LAW OF TRUSTS
MODULE CODE: LLAW2105

Duration: 2 Hours

Reading time: 10 Minutes

Instructions to Candidates:

1. This question paper consists of Section A and Section B.

2. Section A is compulsory.

3. Answer any TWO questions from Section B.

4. Always start a question on a fresh page.

5. Total marks: 100

This question paper contains 4 questions and 3 pages.

Page 1 of 3
SAFE
 SECTION A: COMPULSORY

QUESTION 1: (40 MARKS)

Reaz, a foreigner, has two children; one son aged 16 and one daughter aged 21. His
son is still at school and his daughter is married with a Mauritian but has no children
yet. He wishes to distribute his estate equally between his two children after his
death. He is however unable to do that in his country of origin because the law there
does not allow him to do so. He therefore wishes to create a trust in Mauritius with
his two children as beneficiaries.
He comes to you for advice on the following:

(a) Can a foreigner like him create such a trust in Mauritius?

Explain. (5 Marks)

(b) He has heard that, with regards to Section 6 of the Mauritian

Trusts Act 2001, certain conditions should be fulfilled for such
a trust to be valid in Mauritius. Advise him. (15 Marks)

(c) Will such a trust remain valid even if it is illegal in his country
of origin? (5 Marks)

(d) What will be the maximum duration of such a trust? (2 Marks)

(e) Can he also create a trust with his future grand-children as

beneficiaries? (5 Marks)

(f) Reaz also informs you that his son wishes to create a trust
where the latter wants to be the sole beneficiary. Advise him. (4 Marks)

(g) Will it make any difference if Reaz tells you that his son is
getting civilly married next month to a German national?
Explain. (4 Marks)

Page 2 of 3
SAFE
 SECTION B: ANSWER ANY TWO QUESTIONS

QUESTION 2: (30 MARKS)

(a) Advise on the following sets of facts:

(i) Tim leaves the residue of his estate on trust for such of his
employees and their dependents, and such of his old friends as
his trustees shall in their absolute discretion select. (10 marks)

(ii) By his will, Tom left Rs 10m on trust to fund scholarships for his
poor relations intending to pursue tertiary education but
preference to be given to male applicants. (10 marks)

(b) He who comes to Equity must come with clean hands

Explain this maxim using illustrations. (10 marks)

QUESTION 3: (30 MARKS)

Consider the legal differences between a custodian and a managing trustee.

QUESTION 4: (30 MARKS)

Discuss the remedies available against a trustee for a breach of trust or duty.

***END OF QUESTION PAPER***

Page 3 of 3
SAFE