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Rubber stamp alert

This week’s High Court costs decision in Black v Giltech Precision Castings makes sobering reading for trustees.  The judgment follows a substantive decison finding against Mr Black and the trustees of of a trust settled by Mr Black. The independent trustee resigned just prior to the matter being heard.  However, when costs were considered, this did little … Continue reading

KA3, KA4, FMA KO?

In December 2010 the High Court granted interim asset preservation orders in respect of assets owned by the trustees of the KA3 and KA4 Trusts and former Hanover director Mark Hotchin. The trustees of the KA3 and KA4 trusts challenged the High Court’s refusal to strike out certain aspects of the Financial Market’s Authority (FMA) claim, … Continue reading

Insolvent trustees should be liquidated

The Court of Appeal has overturned the High Court decision of Commissioner of Inland Revenue v Newmarket Trustees Limited.  Ed note: Newmarket Trustees Limited was placed into liquidation on 12 October 2012. Newmarket Trustees is a corporate trustee that acts for a number of trusts.  Newmarket Trustees is insolvent due to unmet tax liabilities in … Continue reading

My trust is my creature

The recent High Court decision in Stokes Family Trust v RM Colebrook Family Trust should ring alarm bells for anyone who routinely makes purchases on an “or nominee” basis and then nominates the same trustee purchaser as to do so could invoke the doctrine of undisclosed principal. Background The facts of the case can be … Continue reading