Common Fund
Formation of common fund
10.—(1)  Subject as hereinafter provided all capital moneys available for investment which come into the hands of the Public Trustee shall form one common fund and may from time to time be invested in any investments permitted by law for the investment of trust funds.
(2)  Any investments of capital moneys belonging to any estate in the hands of the Public Trustee may, subject as hereinafter provided, be taken over and included in the investment account of the common fund.
(3)  All investments taken over under subsection (2) shall be taken over at the market rate ruling at the date of the taking over less any interest accrued at that date and no such investment shall be taken over unless it is an investment permitted by law for the investment of trust funds and in the opinion of the Board is and is likely to continue to be readily realizable. For the purpose of this section interest shall be deemed to accrue from day to day and shall be apportionable in respect of time accordingly.
(4)  Any investment made on account of the common fund or included in its investment account shall not be made or held on account of or belong to any particular estate.
What are not to be included in the common fund
11.—(1)  The following shall not be included in or form part of the common fund:
(a)moneys expressly or by necessary implication forbidden to be included in the common fund or directed to be invested in investments other than those permitted by law for the investment of trust funds;
(b)investments held by the Public Trustee which have not been taken over under section 10(2).
(2)  Section 16 shall not apply to the moneys and investments referred to in subsection (1).
(3)  Nothing in this section shall be deemed to limit or restrict the liability of the Consolidated Fund under section 17.
Interest payable on the moneys included in the common fund
12.—(1)  The interest payable to the respective estates the moneys of which form part of the common fund shall be at such rate or rates as the Minister may by notification in the Gazette appoint.
(2)  Such rate or rates shall be published in the month of December in each year and shall remain in force from 1st January to 31st December of the next ensuing year.
(3)  Different rates may be prescribed for payment on capital moneys not payable at call and on capital moneys held in the ordinary course of administration for distribution or at call.
(4)  Interest payable from the common fund shall be credited half yearly to the respective estates provided that the Public Trustee may at his discretion credit such interest at such more frequent intervals as he may think fit in the case of any particular estate.
Constitution of the Public Trustee Investment Board
13.—(1)  There shall be established a board styled the Public Trustee Investment Board.
(2)  The Board shall consist of the Permanent Secretary, Ministry of Finance, as chairman, the Solicitor-General, the Public Trustee and two other public officers to be nominated from time to time by the Minister.
(3)  Three of the members of the Board shall form a quorum.
(4)  The Board may from time to time make by-laws for the control of its business and proceedings.
Powers and duties of the Board
14.—(1)  No investments shall be purchased or sold by the Public Trustee without the sanction of the Board.
(2)  No investments shall be taken over and included in the investment account of the common fund as provided by section 10(2) without the sanction of the Board.
(3)  In the month of November in each year the Board shall present to the Minister a report showing the estimated value of the capital assets of the common fund and the estimated revenue therefrom for the ensuing year, and shall at the same time recommend to the Minister the rate or rates which in its opinion should be prescribed by him for the ensuing year under section 12(1).
(4)  In the month of April or such later month as the Minister may appoint for that purpose in each year the Board shall give such directions to the Public Trustee as may be necessary with regard to the disposal of any balance standing to the credit of the income account of the common fund at the end of the preceding year after interest payable to the beneficiaries and other lawful charges have been duly debited to the said income account. Such part of the balance as the Board may direct shall be carried to the credit of a reserve fund and the balance if any shall be carried to the credit of the income account for the current year.
(5)  The reserve fund shall be under the control of and shall be dealt with by the Board in such manner as may be prescribed.
Persons not obliged to enquire whether dealing sanctioned
15.  No person dealing with the Public Trustee in the matter of the sale or purchase of any investment shall be under any obligation to enquire whether such sale or purchase has received the sanction of the Board.
Government guarantee in regard to moneys included in the common fund
16.—(1)  The Consolidated Fund shall be liable to make good any lawful claims on the common fund which cannot be met therefrom, whether the claims relate to capital moneys or to income.
(2)  The capital moneys claimable by any estate shall include the moneys from the estate included in the common fund and where investments have been taken over under section 10(2) they shall also include the value of those investments as ascertained in accordance with section 10(3).