TRUSTEE, RESIGNATION, REMOVAL AND APPOINTMENT OF. (Fiero, Spec. Pro., 3rd Ed., pp. 2006-2034.) Art. I. Resignation and removal of trustee. II. When a trustee may be appointed. III. Proceedings to obtain appointment of trustee. RESIGNATION ARTICLE I. AND REMOVAL OF TRUSTEE. (Fiero, Spec. Pro., 3rd Ed., pp. 2007-2019.) A court of equity has power to remove trustees and appoint others in their stead where the preservation of the trust estate requires such action. McKenna v. O'Connell (1914), 84 Misc. 582, 147 N. Y. Supp. 922. A Surrogate has power to entertain concurrently a proceeding to remove a surviving testamentary trustee and one to fill the resulting vacancy, especially where the petition is made by a cotrustee. Matter of Boyle (1915), 166 App. Div. 504, 151 N. Y. Supp. 1022, affd., 217 N. Y. 673. A substitution of one of four trustees may be made where it appears that the one is out of harmony with the other three and accord among the four in the management of the estate is impossible, although the fourth is unquestionably qualified to perform the duties of trustee. Matter of Etgen (1911), 146 App. Div. 932, 132 N. Y. Supp. 308. Where the value of a trust estate is largely dependent upon the trustees continuing to control a majority of the stock of a manufacturing corporation in which the trust estate is invested, in an action to remove one of the trustees and to appoint another trustee with the avowed object of changing the management of the corporation, regardless of whether its present management has been efficient or not, and such action would probably result in an immediate impairment of the credit of the corporation, but, on the other hand, to continue a condition where one of the trustees practically controls and manages the affairs of the corporation, to the exclusion of the other trustees who are beneficiaries of the estate, would be violative of the clear intent of the trust, the present trustees should all be removed and an entirely disinterested person, representing neither of the antagnostic interests, should be appointed in their stead with power, if the preservation. of the estate requires, to inaugurate a change in the management of the corporation's affairs, or if he finds the continuance of the present management to be for the best interest of the trust estate, vote its stock in favor of the continuance of such management, or dispose of the stock holdings of the estate. McKenna v. O'Connell (1914), 84 Misc. 582, 147 N. Y. Supp. 922. ARTICLE II. WHEN A TRUSTEE MAY BE APPOINTED. (Fiero, Spec. Pro., 3rd Ed., pp. 2020-2025.) Where all but one of four trustees die to whom, and the survivors of them, the testator devised his estate in trust, an application for the appointment of a successor testamentary trustee under section 2638 of the Code of Civil Procedure, must show that it is for the benefit of the cestuis que trustent so to do. Matter of Zerega (1913), 81 Misc. 113, 142 N. Y. Supp. 144, affd., 144 N. Y. Supp. 1151. Where, in the event of the death of a testamentary trustee, the will provided for the appointment of a trust company as substituted trustee, and just before the entry of a decree directing the payment of the principal of a trust fund to the guardian of an infant remainderman, the absolute owner of such fund, the testamentary trustee dies, the court has no jurisdiction to direct his executor to pay the fund to the general guardian of the infant, but a successive trustee must be appointed. Matter of Vernon (1912), 77 Misc. 425, 137 N. Y. Supp. 767. ARTICLE III. PROCEEDINGS TO OBTAIN APPOINTMENT OF TRUSTEE. An order appointing a new trustee without notice to a person claiming an interest in the estate under a will of a beneficiary of the testator should be reversed. Matter of Yanz (1913), 156 App. Div. 239, 141 N. Y. Supp. 262. ARTICLE IV. EFFECT OF APPOINTMENT OF SUBSTITUTE TRUSTEE. (Fiero, Spec. Pro., 3rd Ed., pp. 2032-2034.) Upon the death of trustees before executing a power of sale in a will the unexecuted trust vests in the Supreme Court and a sale by a trustee appointed by the court for the purpose of executing the trust is valid. Forman v. Young (1915), 166 App. Div. 815, 152 N. Y. Supp. 417. TWO-THIRDS ACT. See DEBTOR AND CREDITOR Law. VILLAGES, EXPENDITURES OF. See EXPENDITURES OF TOWNS AND VILLAGES. VOLUNTARY DISSOLUTION OF CORPORATION. See CORPORATION, PROCEEDINGS FOR DISSOLUTION OF. |