Taxes Consolidation Act 1997 Schedule 12 paragraph 9

Trust deed and minimum trustee requirements

Schedule 12 paragraph 9 sets out the trustee requirements for the second type of approved profit sharing scheme trust, which provides for equal employee and company representation among the trustees together with an independent professional trustee.

• The trust deed must appoint the initial trustees and contain rules for the retirement, removal and replacement of trustees, and at all times there must be at least three trustees, all of whom must be resident in the State.
• At least one trustee must be a professional trustee — a trust corporation, solicitor or member of another Revenue-approved professional body — who is not an employee or director of any company in the founding company's group, and who was selected by the non-professional trustees.
• At least two trustees must be non-professional trustees, at least half of whom must have been selected through an employee election process or by elected employee representatives; those selected must be employees of group companies who have never had a material interest in any such company.
• The employee election process must, so far as is reasonably practicable, give all eligible employees the opportunity to stand for selection and to vote, with preference given to candidates receiving more votes.