Duties

Question 1

What are the general duties of trustees?

Answer 1

Protect the interests of present and future beneficiaries.
Act impartially in best interests of beneficiaries.
Safeguard capital.
Generate income

Question 2

What are fiduciary duties?

Answer 2

Obligations of loyalty, prudence and faithfulness.
Not entitled to profit from his position.
E.g solicitor, trustee, accountant.

Question 3

What are the duties upon taking office?

Answer 3

Familiarise themselves with the terms of trust and their obligations.
Ensure the trust is properly vested.
Review actions of the trustees to ascertain whether breaches have occurred.

Question 4

How must a fiduciary act?

Answer 4

In good faith.
Must not make profit.
Must not be in position where interest and duty conflict.
Must not act for own benefit.

Question 5

What is the principle in Boardman v Phipps?

Answer 5

Solicitor made profits for himself and the company but acted bona fide for the best interests of the company.
The profits made were held on CT for the trustee.
Solicitor received quantum meirut monies.

Question 6

What are the key sections associated with the duty of investment?

Answer 6

1 - duty of care
3 - general powers of investment
4 - standard investment criteria
5 - obtain proper advice
11 - employ agents to help with investment
22 - review the work of agents

Question 7

What is the difference between a duty and a power?

Answer 7

Duty - must be exercised, although T has discretion as to precisely how it is exercised.
Powers - discretionary and courts can interfere if they have acted in bad faith.

Question 8

What is the principle in Cowan v Scargill?

Answer 8

Trustees must always consider the best interests of beneficiaries when investing - investing in miners community was a breach.