RECOGNITION OF TRUSTS BILL [Lords]

Second Reading Committee

RECOGNITION OF TRUSTS BILL [LORDS]

3 March 1987

SECOND READING COMMITTEE

RECOGNITION OF TRUSTS BILL [LORDS]

Corrigenda

Tuesday, 3 March 1987

Col 3, line 14, for "on" read "of"

PARLIAMENTARY DEBATES

HOUSE OF COMMONS

OFFICIAL REPORT

Second Reading Committee

RECOGNITION OF TRUSTS BILL [LORDS]

Tuesday 3 March 1987

CONTENTS

RESOLVED, That the Chairman do now report to the House that the Committee recommends that the Recognition of Trusts Bill [Lords] ought to be read a Second time.

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The Committee consisted of the following Members:

Chairman: Sir Anthony Meyer

Best, Mr. Keith (Ynys Môn)

Brown, Mr Nicholas (Newcastle upon Tyne, East)

Carlile, Mr. Alex (Montgomery)

Carttiss, Mr. Michael (Great Yarmouth)

Conlan, Mr. Bernard (Gateshead, East)

Corbyn, Mr. Jeremy (Islington, North)

Cox, Mr. Tom (Tooting)

Dorrell, Mr. Stephen (Loughborough)

Dunwoody, Mrs. Gwyneth (Crewe and Nantwich)

Flannery, Mr. Martin (Sheffield, Hillsborough)

Forth, Mr. Eric (Mid-Worcestershire)

Heddle, Mr. John (Mid-Staffordshire)

Maples, Mr. John (Lewisham, West)

Maude, Mr. Francis {Warwickshire, North)

Pawsey, Mr. J. F. (Rugby and Kenilworth)

Solicitor-General, The

Sumberg, Mr. David (Bury, South)

Terlezki, Mr. Stefan (Cardiff, West)

Mr. A. H. Doherty, Committee Clerk.

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3 Second Reading Committee Tuesday 3 March 1987

[Sir ANTHONY MEYER in the Chair]

RECOGNITION OF TRUSTS BILL [LORDS]

10.30 am

The Solicitor-General (Sir Patrick Mayhew): I beg to move That the Chairman do now report to the House that the Committee recommends that the Recognition of Trusts Bill [Lords] ought to be read a Second time. The Bill will enable the United Kingdom to ratify the convention on the law applicable to trusts and on their recognition, which was adopted in draft by the Hague conference on private international law in 1984 and signed on behalf of the United Kingdom in January 1986. The Bill will incorporate into United Kingdom law the main provisions of the convention, which establishes common principles between states as to the law governing trusts and provides that trusts to which the convention applies will be recognised by states adopting the convention. The Bill will assist the position of United Kingdom trusts with interests overseas. The Bill is somewhat technical, but I may briefly summarise what it does. Clause 1 provides that the provisions of the convention that are set out in the 4 schedule to the Bill are to have the force of law in the United Kingdom. Those provisions are to cover not only the categories of trust described in the convention, but other trusts of property. Clause 2 deals with extent. Clause 3 provides for the Bill to come into force upon an appointed day. The provisions of the convention are set out in the schedule. Chapter I describes the scope of the convention, chapter II identifies the national law that is to govern a particular trust, and chapter III describes the extent to which the trust is to be' recognised in accordance with that law. The convention does little more than place United Kingdom trust law in statutory form, but, once ratified, it should encourage other contracting states to incorporate it into their law, thus ensuring, for example, that United Kingdom trust assets held overseas are not in jeopardy if the trustee should become insolvent. The Bill completed its passage in another place with no amendments tabled. It was welcomed as a valuable measure of law reform, for which, once again, we are grateful to the Lord Chancellor's Department, and it is a measure which will serve to clarify and develop the existing law. I commend it to the Committee.

Question put and agreed to.

Resolved, That the Chairman do now report to the House that the Committee recommends that the Recognition of Trusts Bill [Lords] ought to be read a Second time.

Committee rose at twenty-eight minutes to Eleven o'clock.

THE FOLLOWING MEMBERS ATTENDED THE COMMITTEE:

Meyer, Sir Anthony (Chairman)

Dorrell, Mr.

Forth, Mr.

Heddle, Mr.

Maples, Mr.

Maude, Mr.

Pawsey, Mr.

Solicitor-General, The

Sumberg, Mr.