Trustee – exercise of discretion

A helpful summary of the principles concerning the grounds on which the exercise of a trustee’s power can be challenged is found in a passage from the decision of Northrop J in Clerical Administrative and Related Employees Superannuation Pty Ltd v Bishop (1997) 76 IR 139, which was cited on appeal by Heerey J (Wilkinson […]

08, 25, 2015
Comments Off on Trustee’s duties

By whiggs

Trustees, Trusts & Trustee Law

Trustee’s duties

Trustees duties: (1) it owes its members a duty to act in the members’ best interests: see Cowan v Scargill [1984] 2 All ER 750 at 760 per Sir Robert Megarry VC: “The starting point is the duty of trustees to exercise their powers in the best interests of the present and future beneficiaries of […]

08, 25, 2015
Comments Off on Trustees rights on removal (indemnification and exoneration)

By whiggs

Trustees, Trusts & Trustee Law

Trustees rights on removal (indemnification and exoneration)

Caterpillar Financial Australia Limited v Ovens Nominees Pty Ltd [2011] FCA 677 If a corporate trustee is removed as trustee by the operation of a disqualification clause in the trust deed, the position is as follows: (i) notwithstanding the appointment of a new trustee, as the former trustee, it retains its right of indemnity and/or exoneration (described […]

08, 25, 2015
Comments Off on Trustees rights on liquidation (indemnification and exoneration)

By whiggs

Trustees, Trusts & Trustee Law

Trustees rights on liquidation (indemnification and exoneration)

Caterpillar Financial Australia Limited v Ovens Nominees Pty Ltd [2011] FCA 677 A corporate trustee enters liquidation, its position is as follows: (i) its right of indemnity, or exoneration, is retained (at [16]); (ii) it continues to have the right to meet creditors’ claims related to any liabilities incurred by it in its capacity as trustee, out of the […]