1. PROVIDE NOTICE TO BENEFICIARIES The first and perhaps most important duty a trustee has is to keep the beneficiaries/ratepayers informed with the trust/operations of the utility
2. PROTECT THE TRUST/UTILITY ASSETS
3. MAKE INFORMED, PRUDENT DECISIONS TO DEPLOY BENEFICIARY/ RATEPAYER FUNDS
[emphasis added]
What is trustee malfeasance?
Trustee malfeasance refers to any type of negligent, self-serving, erroneous, or retaliatory conduct committed by the trustee of a trust or quasi-government unit operating similarity resulting in harm to trust assets, primarily property and monies they manage, for beneficiaries/ratepayers. Beneficiary can mean ratepayers relying on prudent expenditures by trustees in order to obtain good value on fees as well as a community relying on sound environmental practices.
Trustee malfeasance is a broad term encompassing many different types of offenses, both intentional and unintentional. Trustees have many duties under the law that may be interpreted to apply to a publicly chartered utility with quasi-governmental status.
The “quasi” aspect of a hybrid entity indicates private sanctions as well as public protections can apply in any given situation.
Is a trustee the same as an owner?
The trustee is not considered the legal owner of assets in the traditional sense. Instead, the trustee holds legal title to the trust property, but they do so for the benefit of beneficiaries/ratepayers, who hold equitable title.
"Quasi-municipal corporation or district means any governmental unit that includes a portion of a municipality, a single municipality or several municipalities and which is created by law to deliver public services but which is not a general purpose governmental unit. Quasi-municipal corporation or district does not include School Administrative Districts or hospital districts."
Definition found in:
MAINE Title 30-A: MUNICIPALITIES AND COUNTIES
Part 2: MUNICIPALITIES
Subpart 2: ORGANIZATION AND INTERLOCAL COOPERATION
Chapter 120: QUASI-MUNICIPAL CORPORATIONS OR DISTRICTS