Section 235: Incorporation of host communities development trusts.

1 The settlor shall incorporate host communities development trust (in this Act referred to as "the trust") for the benefit of the host communities which the settlor is responsible.

2 Where there is a collectivity of settlors operating under a joint operating agreement with respect to upstream petroleum operations, the operator appointed under the agreement shall be responsible for compliance with this Chapter on behalf of the settlors.

3 For settlors operating in shallow water and deep offshore, the littoral communities and any other community determined by the settlors shall be host communities for the purposes of this Act.

4 The settlor shall for the purpose of setting up the trust, in consultation with the host communities, appoint and authorise a board of trustees ("the Board of Trustees"), which shall apply to be registered by the Corporate Affairs Commission as a corporate body under the Companies and Allied Matters Act in the manner provided under this Chapter. [Act No 3, 2020]

5 The name of the corporate body to be registered by the Board of Trustees shall contain the phrase "host communities' development trust".

6 The Commission or Authority, as the case may be, shall —
a make regulations on the administration, guide and safeguard the utilisation of the trust fund; and
b
have the oversight responsibility for ensuring that the projects proposed by the Board of Trustees are implemented.

7 The settlor shall undertake needs assessment that will metamorphose into the community development plan for the purpose of determining the projects to be undertaken by the host communities development trust.