Investments under the trustee act-trust laws and accounts, Financial Accounting

Investments under the Trustee Act

The act defines the categories of investment as follows:
       
1. Fixed interest securities are:

  • Securities which under their terms of issue, bear a fixed rate o f interest; or
  • Mortgages of immovable property; or
  • Deposits, whether fixed-term or otherwise, with a  bank or financial institution building society or the Post Office Savings Bank.

 

2. “Wider Range “, i.e. building society shares, units of authorise unit trusts, and stocks and shares issued by companies if:

  • Company has issued and paid up capital of at least Shs.10 million.
  • Dividends have been paid on the shares in each of the preceding fiveyears; and
  • The shares are quoted on the Nairobi Stock Exchange.

 

In addition, immovable property in Kenya for an estate in fee simple or for a term of years  of which not less than 40 years is unexpired

3. Special-range property - property represented by any power of investment exercisable by a special investment clause contained in the trust instrument e.g. power to  invest in the shares of a private company.  This property musts be placed in a separate part of the fund and the provisions for division of the fund into   “narrower” and the “wider” range parts will only apply to the residue of the fund. If special range property is realised and converted into property other than special range property e.g. sale precedes, the balance between “fixed interest” and “wider range property must b e maintained.

Posted Date: 12/13/2012 6:30:10 AM | Location : United States







Related Discussions:- Investments under the trustee act-trust laws and accounts, Assignment Help, Ask Question on Investments under the trustee act-trust laws and accounts, Get Answer, Expert's Help, Investments under the trustee act-trust laws and accounts Discussions

Write discussion on Investments under the trustee act-trust laws and accounts
Your posts are moderated
Related Questions
Income Statement Preparation The following information is taken from the records of Wadley's Car Wash for the year ended December 31, 2012. Income taxes . . . . . . . . . . . . .

In January, 2008, Sanford Corporation purchased a patent for a new product for $1,200,000. The patent was valid for fifteen years but it was estimated to have a useful life of ten


ARG Co presently has $50m of fixed assets and long-term debt of $10m. The issue of $3m of 9% debentures will raise fixed assets by $2m of buildings and machinery. There appears to

LCI Cable Company grants 1.4 million performance stock options to key executives at January 1, 2013. The options entitle executives to receive 1.4 million of LCI $1 par common shar

#what are the limitations or disadvantages of accounting concept?

A company that uses the perpetual inventory system purchased $8,500 worth of inventory on September 25. Terms of the purchase were 2/10, n/30. The invoice was paid in full on Octob


Creation An express trust is "created not by facts and circumstances, but by the express words of the settlor". (Fitzgerald v Stewart) It may be created in the following ways:

The dividend yield as well as capital growth for 2004 must be calculated with reference to the 2003 end-of-year share price. The dividend yield is 0·56% (100 × 2·8/500·8) as well a