- 3 - profit-sharing plan. In 1986, petitioner became a director and shareholder of RHB and purchased stock representing a 5-percent share of RHB. In February 1987, petitioner was elected to RHB’s board of directors. RHB was formed to provide administrative, management, and investment services for fiduciaries and others, to the extent permitted by law. RHB did not have trustee powers, was not a trust company or bank, and was not registered under the Investment Advisers Act of 1940. RHB could not be appointed to serve as a corporate trustee. Instead, individual fiduciaries associated with RHB were named and served as trustees in their individual capacities. As the named trustees, the fiduciaries were the legal owners of trust assets and had sole custody and authority over the trust assets under their care. Typically, only RHB’s shareholders and directors served as named trustees. Before being retained by a client, the fiduciaries provided the prospective client with a fee schedule, a fiduciary services statement, and a copy of the RHB trustees’ investment philosophy. If a new client did not like a particular fiduciary, the client could chose from other fiduciaries at RHB. There was an attempt amongst the fiduciaries to equalize their workloads. The fiduciaries released all trustee’s fees paid to them to RHB. RHB decided how to allocate those fees for paying expensesPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011