Does the Trustee’s right of indemnity have priority over the right of beneficiaries in relation to assets?

In Chief Commissioner of Stamp Duties (NSW) v Buckle, the High Court held that a trustee’s right of indemnity out of trust assets was not an encumbrance upon the interests of the beneficiaries. Until the trustee’s right of reimbursement or exoneration has been satisfied, it is impossible to say what the trust fund is, in […]

08, 25, 2015
Comments Off on Trustee – exercise of discretion

By whiggs

Trustees, Trusts & Trustee Law

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 […]