Public trust status can apply to a company holding property for charitable objects under its memorandum and trust powers.

A company limited by guarantee, incorporated under a licence dispensing with the word "Limited", may hold property in trust where its memorandum authorises it to accept trusts, receive donations, and apply funds for educational, medical, religious, and other charitable objects. Such a corporation is a juristic person capable of acting as trustee, and the wide statutory definition of public trust can extend to property held for public religious and charitable purposes. Incorporation under company law does not exclude the entity from public trust legislation. Objections based on the absence of property at incorporation, alleged dual control, and the possibility of removing the trustee were rejected, and the company was treated as liable to registration as a public trust.

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Issues: Whether a company limited by guarantee, incorporated under a licence dispensing with the word "Limited", could hold property in trust for public religious or charitable purposes and be treated as a public trust liable to registration under the Bombay Public Trusts Act, 1950.

Analysis: A corporation is a juristic person capable of owning property and, where its constitution authorises it, of acting as trustee. The company's memorandum expressly empowered it to accept and undertake trusts, to accept donations, and to hold its property and funds in trust for the objects set out in the memorandum. Those objects included educational, medical, religious, and other charitable activities for the benefit of a community, which were treated as public religious and charitable purposes. The statutory definition of public trust was wide enough to cover such an arrangement, and the fact that the entity was incorporated under company law did not exclude it from the operation of the public trust law. Objections based on absence of property at incorporation, alleged dual control, and possible removal of the trustee were rejected.

Conclusion: The company was held to be a trustee in respect of property held for public religious and charitable purposes and was liable to be registered as a public trust.

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