Bassey Speaks

1. TRUST can be defined as an equitable obligation binding a person(Trustee) to deal with property over which he or she has control(Trust Property) for the benefit of persons (Beneficiaries or cestui que trust) of whom he or she may be one of whom may enforce the obligation.
2. Trustees are those persons entitled with the administration and management of a trust for the benefit of beneficiaries.
3. TYPES OF TRUST: There are basically 3 kinds of Trust; and these are;
4. Express Private Trust: This is a trust that is created with a clear intention; and it is usually done in writing. It is a trust that is created for the benefit of an individual or a class of individuals. An express private trust will only be valid if these 3 certainties are present:
5. Certainty of Word: Though the word used need not be formal, if must be imperative and should show that a trust is intended.
6. Certainty of Subject:  The property which is the subject matter of the trust must be certain and the interest of the beneficiaries in the property must be ascertainable.
7. Certainty of Object:  This means that the beneficiaries must be identified, named and the means of identifying such beneficiaries must be made; so that the trustees can recognize such beneficiaries.
8. Resulting Trust: This trust can arise when the beneficial interest in the trust property returns to the settler. However, a resulting trust can arise from an express trust when;
9. a.       an express trust becomes void through uncertainty, impossibility, illegality, or by breaking the rule of perpetuities
10. b.      the trust instrument expressly provides that the property is to revert to the settler in due course
11. Constructive Trust: This arises by operation of law either because of the implied intentions of the parties or because it would be inequitable not to impose a trust. Constructive trust can arise by operation of law under these following instances;
12. a.       it is a strict rule of equity that a trustee is not entitled to make a profit from his or her trust, if he or she does, he or she is assumed to hold it in constructive trust for the benefit of the beneficiaries.
13. b.      a person who fraudulently acquires a trust property is a constructive trustee of that property for the   persons injured by his or her actions.
14. GENERAL DUTIES OF TRUSTEES: The duties of a trustee are imposed by the general law and the trust instrument. There are instances where a trustee can use his or her discretion to act and under such instances, he or she is expected to act honestly with the care that a prudent person of business would take to manage the affairs of his or her own business.
15. A trustee must familiarize himself or herself with the trust deed; for it is his or her duty to administer the trust in accordance with the trust deed.
16. A trustee should ensure that money owed the trust is paid and proceedings are properly recorded and kept. This means that proper accounts are maintained, audited and kept
17. Trustees should ensure that reasonable care is taken in the discharge of their duties; which must be carried out in good faith. This includes obtaining professional advice in areas where the trustees are not proficient, skillful, knowledgeable and competent.
18. Trustees are allowed to use their discretion and good sense of business judgment in some cases to deal with matters that are covered by rules in the deed. Some of these discretionary powers may involve decisions in principle; while others may involve investing decision, sales decision and pricing decision.
19. A trustee is not allowed to secure any personal advantage (profit) from his or her position as trustee unless an exception applies. It is the duty of a trustee to avoid any situation or transaction in which his or her personal interest and his or her duty of disinterested service may conflict.   

Bassey is interested in writing on various issues of both personal and public interest. http://basseyspeak.com

1. Litigation over business disputes can be expensive and time consuming. It can destroy both developing and established relationships. Whilst disputes may seem an inevitable part of commercial life, the secret is to avoid them. And this can be done by controlling matters at the initial contracting stage in order;
2. to predict and deal with potential contentious matters; and
3. to set up dispute resolution system which potentially cause the least damage.
4. The other part of the solution is to manage business relationships with the possibility of disputes in mind. This means adopting pro-active strategies to put yourself in the best position if a problem arises,
5. The first point is that a written contract always helps. The mere effect of reducing something to writing may help focus on potentially difficult issues. Even if every transaction does not have a separate agreement, it is worth ensuring that standard terms and conditions of business are properly incorporated.This means making sure that the terms and conditions are made known and duly accepted at an earlier stage.
6. Depending on the type of contract, you should consider regulating commencement, delivery and risk, acceptance,termination and the effect of insolvency.
7. If possible, you should try to be in a position to control the fruits of the action; it is better to be sued than to sue, to defend proactively rather than to initiate a claim reluctantly.
8. And where a dispute arises, it is helpful to review the options for resolving any disputes for which there is no formal mechanism in the contract. Rather than crowding the court, it wil be wise to have an arbitration clause which provides for binding adjudication outside the court system.
9. A further matter for consideration in international contracts is the choice of governing law and the legal system which is to have jurisdiction.
10. KNOWING THE OTHER PARTY
11. It helps to know the other party or to have a formal knowledge of the other party or potential trading partners.
12. It is advisable that vital information, credit report, at the very least; full company search and getting to know about their business is carried out to ascertain the other party’s competence and partnership suitability. Even the identity and personalities of senior management and the nature of office politics can be relevant and helpful. But such steps should be taken with legal professional privilege or within legal frame work.
13. Letters and other documents passing between the parties should be monitored and reviewed so that potential problem areas or phrases are removed.
14. Even when provoked or cheated, be restrained in correspondence and do not allow your emotion to lead your action. Do not make claims or assertions that are contentious; this will give a misguided clue or treated as a dangerous or warning signal of an impending danger. Never respond to a mail or memo in the fit of anger; but instead discuss the mail or memo with a colleague or professional adviser.Many commercial disputes arise from entrenched positions taken unnecessarily.
15. The secret of avoiding litigation is early planning and awareness of the risk involved.Litigation can be avoided if both parties put their common sense and goodwill at best use. The more thought that is given to these issues at an early stage, the greater the prospect of a mutually beneficial solution. And where little or sensitive matters are guided in this way, the better it is for our courts; because litigation can be avoided and business friendship is strengthened.

Bassey is interested in writing on various issues of both personal and public interest. http://basseyspeak.com

As with any other professional adviser, it is vital that a company select an insurance broker with whom they feel comfortable in terms of capability, suitability, chemistry and cost. The absence of any one of these vital ingredients will not allow the friendship to grow.

A broker should be viewed as an extension of the company’s department and you must allow sufficient time for the selection exercise to be properly conducted.

1. Choosing the participants. The spread and nature of the company’s business will be the determining factor in choosing a suitable insurance broker. If the company is in international business with overseas subsidiaries and assets, the management of the company should look for a broker with an international network of offices who can service their overseas subsidiaries locally. If the company is based locally, overseas servicing will not be a priority unless foreign expansion is contemplated in the short or medium term.It is by no means rare to find international businesses using one or more brokers to handle their local risks and a totally different broker or brokers to handle their overseas risk. The nature of the risk that a company is facing or exposed to might also turn the company towards brokers who can demonstrate knowledge and experience in a particular industry.
2. Clarifying the broker’s role. Before embarking on the selection of a broker, a review should be undertaken of the company’s insurance program. The role the broker is expected to play must be clarified. The broker’s responsibility will naturally include:
   
   • Placing cover
   • Documentation
   • Invoicing
   • Maintenance and reporting
   • Claim handling
3. Inviting and selecting the broker or brokers. A selection committee should be formed to drive the selection process. In particular, the financial and operational areas of the business should be represented.In inviting broking firms for interview, a manageable number should be invited. An invitation letter should be sent to each contestant offering them the opportunity to participate and setting down in the letter information that the company will need. Such information may include:
   
   • The nature of the business
   • The insurances to be reviewed
   • Current insurance register
   • Time table which sets out the date by which the report must be submitted; the date in which it will be submitted to the committee; and the date of appointing the successful broker
4. Involving the insurance market. Extreme care must be taken in allowing competing brokers loose in the insurance market to obtain premium quotes. It will be counter-productive if they are allowed enough room to hawk the company’s portfolio in the market; it makes sense therefore to select only one finalist or two so that this finalist will go to the market.However, the time commitment should not be under-estimated. The target should be to achieve better cover, cover costs and enhanced service.

Bassey is interested in writing on various issues of both personal and public interest. http://basseyspeak.com