I.   Introductory Provisions

Frugality is one of the eight standard characteristics required of a Trustee being economical and thrifty in the good use of those resources in ones possession or custody. The opposite of waste.

The term frugality comes from the Latin frugalis meaning “the economical, thrifty and good use of the fruits (of the earth; produce of the earth)”.

Under the character of Frugality, a Fiduciary is forbidden to act in any following manner:

(i) To take selfish advantage of the Trust bestowed or deal with the subject-matter of the Trust in such a way as to personally benefit or prejudice another; or

(ii) To sell, transfer, dispose, give, assign or delegate any property of the Trust contrary to its intended purpose and the terms and conditions of its Instrument of formation; or

(iii) To sell, transfer, dispose or assign any property of the Trust for less than fair value or at an unnecessarily depreciatory value; or

(iv) To purchase, hire, loan or rent goods without first demonstrating any consideration of a best quotation for fair price and without such expenditure being in the best economical interests of the Trust; or

(v) To engage, appoint, hire or employ persons, agents or employees without first demonstrating a genuine need and a position description and without such expenditure being in the best economical interests of the Trust; or

(vi) To engage in sharp business practices; or

(vii) To engage in unfair advantage or profit taking; or

(viii) To commit to deliberate wasteful, extravagant and unnecessary spending.

A Trustee that willfully and deliberately engages in a manner forbidden by the characteristic of Frugality is guilty of a major breach of trust.

A Trustee cannot hold such office in the absence of frugality or proof of engaging in a manner forbidden by the characteristic of Frugality.