The process of registration of an incorporated trust involves the trustees entering into a trust deed which is presented to the Cabinet Secretary together with the prescribed forms for registration and can take between twelve to thirty-six months.
Registration may involve either under the Registration of Documents Act which does not make a trust into a body corporate.
However, the trust can commence implementing the objects of the trust as a simple trust. Or Incorporation under the Trustees (Perpetual Succession) Act where the Trust may be incorporated under the TPSA, making it a body corporate.
The petition must state, inter alia, that the trustees are desirous of being incorporated into a Trust under the Act and give a representation of the common seal of the trust, which must be rounded in shape and with the name of the trust inscribed thereto.
Process Time: The process takes an average of 3 to 6 months to the issuance of a certificate of Incorporation.
The Cabinet Secretary can order an incorporated trust to be dissolved if it has ceased to exist or if its objectives have become incapable of fulfilment. Upon dissolution and where land was vested in it, the trust’s land shall be transferred to the county council in the jurisdiction where the land is situated; if the land is not the trust’s land, it shall be transferred to the government.
The law does not provide for distribution of other assets (Trustees (Perpetual Succession) Act Cap. 164 Section 16(2)).
Trusts not incorporated under the Trustees (Perpetual Succession) Act Cap. 164 are dissolved in accordance with the law of equity.