-36-
trusts, then for the establishment of any additional reserves
deemed by the trustee to be reasonably necessary for any
contingent liabilities, and then to unit holders in accordance
with their capital account balances.
Regarding amendments, the trust agreements provided as a
general rule that any amendment must be in writing and approved
by holders of at least an aggregate 66-percent interest in the
entity. Two modifications of this rule were likewise set forth.
First, the trustee was authorized to amend the agreements without
any unit holder’s consent to (1) correct any patent error,
omission, or ambiguity, and (2) add or delete any provision as
necessary to attain and maintain qualification as a partnership
for Federal income tax purposes or to comply with any Federal or
State securities law, regulation, or other requirement. The
second modification required the written consent of all unit
holders to convert the trust to a general partnership or to
change the liability of or reduce the interests in capital,
profits, or losses of the unit holders. On a related point, the
trust agreements specifically mandated 66 percent approval for
transfer of any part of the trust corpus to another business
trust, partnership, or corporation in exchange for an ownership
interest in the entity and for merger or consolidation of the
trust with another business entity.
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