The Punjab Trusts (Amendment) Act, 2022
The Punjab Trusts (Amendment) Act, 2022 was passed by the provincial assembly in December, 2022 for the purposes of making certain amendments in Punjab Trust Act, 2020 (the “Trust Act”). The most vital amendment is removal of lacuna in the Trust Act which provided that only a natural person can form trust. Therefore, in section 7 of the Trust Act the words “a natural” are replaced with the word “any”, thus allowing a juristic person to form a trust. Now therefore, the corporate entities and limited liability companies can form a trust under their seal and stamp. Another vital amendment is to include the definition of special trusts. The special trusts are mainly the trusts related to corporate structures e.g. pension funds, provident funds, gratuity funds, superannuation funds and employee benefit trusts etc. The Punjab Trusts (Amendment) Act, 2022 clarifies and lays down certain methods for registration of specialized trusts and record keeping of such registration.
