Fiduciary Duties Flashcards
Re Gee
Where a trustee became director after refraining from unsung his vote, which he held by virtue of holding trust shares. He would have been elected anyway, even o he voted against himself. Remuneration received as director was not accountable to the trust.
Keech v Sandford.
Trustee took over benefit of lease when lease expired. Lessor refused to renew lease on the grounds that the beneficiary was an infant so would be difficult to recover the rent. Trustee thereupon took the lease for his personal benefit and profited from it.
Boardman v Phipps
Boardman was a solicitor which held shares in a company. The trust did not wish to buy remaining shares, not could they. Boardman purchased them. He did not obtain consent from all beneficiaries. Boardman’s activities caused the shares to increase in value, making a large profit for himself and the trust. There was no bad faith or conflict of interest. Held the boardman held shares acquired as constructive trustee for trust and must account for any profit. However, he was entitled to remuneration on a quantum meruit basis.
Re Macadam
Trustees who use their position to appoint themselves to directorship of a company were held liable to account to the trust for all the fees they received as directors.
Lister v Stubbs
Taking bribes is a breach of fiduciary duty. No constructive trust arises for company as money was never theirs. They have no interest in the money.
Hong Kong v Reid.
Overrules Lister v Stubbs. Constructive trust arises when taking bribes. Fiduciary duty to employer is breached.
Sinclair investments v Versailles
Breach of fiduciary duty of accepting bribes. Beneficiary cannot claim proprietary interest and is only entitled to an equitable account.
Holder v Holder
Defendant was executor of fathers will. Denunciated himself as will executor as he wanted to but will property. Denunciation unsuccessful. Bid successfully for property. Sale was not set aside.
Regal Hastings v Gulliver
Directors of company subscribed for shares and made a profit. Only able to buy shares cause of position but no conflict of interest. They were not in a position to subscribe on its own account. Directors held liable to account.
Re Dover Coalfield
A director trustee is not bound automatically to hold any personal profits on trust for the beneficiaries, but only after proper enquiry as to the facts of the particular case.
Reading v AG
Worked an army. Illegally transported contraband using his position. He was held accountable for his profits made.
