Powers of investment

1. Shares and debentures:  A trustee may:

• Invest in bearer securities if these would otherwise be authorised;   
• Acquiesce in an amalgamation or reconstruction; and
• Take up or assign “rights” issues.

2. Not more than one-eighth of the value of trust fund or Shs.10,000, whichever is the greater, shall be invested in the securities of any one company or unit trust.

3. Mortgages: These are authorised under the Trustee Act if given in respect of freehold land or leasehold land with at least 40 years unexpiered; the trustee may lend up to two-thirds the value of the land as assessed by a competent surveyor or valuer.

4. Retention of securities:  A trustee is not liable simply for retaining an investment which has cease to be authorised; but he must review periodically – with advice – wider range.