Duties of Express Trustees Flashcards
What is the duty of trustees regarding social investments? (Charities Act 2011, ss 292A–292C)
Trustees of charitable trusts can make investments that both further the charity’s purpose and achieve a financial return.
What did Schmidt v Rosewood decide about beneficiary access to trust documents?
There is no automatic right for discretionary beneficiaries to access trust documents. Disclosure is subject to the court’s discretion.
What did the Supreme Court say about trustee decision-making in Pitt v Holt; Futter?
Hastings-Bass principle narrowed: trustees who act within their powers and duties, even if based on wrong advice, cannot unwind decisions just because the outcome was poor.
Equitable mistake doctrine applies if: Mistake is about legal effect/facts, It caused the decision, It’s sufficiently serious to render the transaction unjust.
What is the financial duty of trustees according to Cowan v Scargill?
Trustees must act in the best financial interests of beneficiaries, even if that conflicts with their own moral or political beliefs—unless all beneficiaries agree otherwise.
What limits did the court place on trustee discretion in Grand View v Wong?
Trustees must act in good faith and within the spirit and purpose of the trust.
Wide powers don’t permit defeating the settlor’s intent.
Appointing a new trust as sole object (excluding the family) was invalid.
Can trustees be exempted from liability for breach of duty? (Armitage v Nurse)
Yes—exemption clauses can exclude liability for negligence, even gross negligence, but not for fraud or dishonesty.
What trustee duties were emphasised in Bartlett v Barclays?
Trustees must actively supervise trust property.
Ignorance is not a defence; trustees are liable if they fail to intervene in risky or negligent company conduct.
Delegation of oversight is not acceptable where action is needed.
