Section 4 of The Charitable Endowments Act, 1890
- (1)Where any property is held or is to be applied in trust for charitable purpose, the 1[appropriate Government], if it thinks fit, may, on application made as hereinafter mentioned, and subject to the other provisions of this section, order, by 2 notification in the Official Gazette, that the property be vested in the treasurer of Charitable Endowments on such terms as to the application of the property or the income thereof as may be agreed on between the 1[appropriate Government] and the person or persons making the application, and the property shall thereupon so vest accordingly.
- (2)When any property has vested under this section in a treasurer of Charitable Endowments, he is entitled to all documents of title relating thereto. 3* * * * *
- (4)An order under this section vesting property in a treasurer of Charitable Endowments shall not require or be deemed to require him to administer the property, or impose or be deemed to impose upon him the duty of a trustee with respect to the administration thereof.
Summary
- The appropriate Government can issue an order to vest (transfer ownership of) charitable property in the treasurer.
- This order is made only after a proper application is received.
- The order must be officially published as a notification in the Official Gazette.
- The terms of how the property or its income is used must be agreed upon between the government and the applicants.
- Once the property is vested, the treasurer has the legal right to all ownership documents for that property.
- This order does not make the treasurer responsible for running the charity, nor does it make them an active trustee with administrative duties.
Practical examples
FAQ
1. How does the appropriate Government vest property in the treasurer?
The government does this by publishing an order as a notification in the Official Gazette.
2. Is an application required before the government can make a vesting order?
Yes, the government can only make the order on an application made as mentioned in the Act.
3. Does the government decide the terms of the vesting order alone?
No, the terms regarding how the property or its income is used must be agreed on between the appropriate Government and the applicants.
4. What documents is the treasurer entitled to after the property vests?
The treasurer is entitled to all documents of title (ownership papers) relating to that property.
5. Does the treasurer have to manage or run the charity once the property vests?
No, the vesting order does not require or force the treasurer to administer the property or perform the duties of an active trustee.
Test yourself
Q1.Where must the vesting order be published to take effect under Section 4(1)?
Q2.Who must agree on the terms of the vesting order?
Q3.What documents is the treasurer entitled to after property has vested under Section 4?
Q4.Does a vesting order impose a duty on the treasurer to administer the property?
Q5.Can the appropriate Government vest property in the treasurer without an application?