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dated, and notarized document to the beneficiaries and board of
trustees.
The declaration of trust directed the trustee to create 100
capital units of beneficial interest, in the form of
certificates, and to issue them to the beneficiaries in exchange
for property contributed to the “corpus of the company”. The
beneficial interest certificates entitled the holder to share in
distributions but conveyed no interest in the trust corpus and
conferred no rights to participate in the management, control, or
administration of the trust. The certificates were freely
transferable and were presumed to be owned by the person who
possessed them. The owner was entitled to his share of any
distributions by presenting the certificate to the board of
trustees and demonstrating his lawful possession of it.
On May 1, 1993, the Gouveias acquired 10 capital units of
the Pago Trust in exchange for $100 and their agreement to assign
the installment and promissory notes from the sale of Brassworks
to the Pago Trust. A certificate for 10 units in the Pago Trust
was issued in the Gouveias’ names and was signed by Mr. Norton.
On May 1, 1993, the Brookes Group acquired 90 capital units
of the Pago Trust in exchange for $100 and its pledge to pay the
Pago Trust, as capital, an amount not to exceed $600,000 but not
less than $300,000. A certificate for 90 units in the Pago Trust
was issued in the Brookes Group’s name and was signed by Mr.
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Last modified: May 25, 2011