Fiduciary duties

Question 1

When can a trustee keep a personal profit?

Answer 1

• it’s authorised by the declaration of trust,
• all beneficiaries are 18+, fully informed, and consented, or
• it’s authorised by a court order/statutory provision

Question 2

What can the beneficiaries do if a trustee engages in self-dealing?

Answer 2

Set the transaction aside within a reasonable time

Question 3

When can a professional trustee get remuneration?

Answer 3

If acting in a professional capacity, isn’t a sole trustee, and all other trustees agree in writing
Gets reasonable remuneration

Question 4

When does a trustee not have to account for the director’s salary he receives?

Answer 4

If, ignoring the trust’s votes on his election as director, he would’ve been elected anyways

Question 5

2 remedies for breach of fiduciary duty (personal profits):

Answer 5

1. personal claim to account for profits
2. proprietary claim