Legler v Formannoij relates to a spirited challenge to the appointment of a corporate trustee to act as the sole trustee of a trust. The arguments put to the court included the contention that this was a fraud on a power as the director and one of the two shareholders was formerly a trustee and was also a beneficiary.
Downs J carefully assessed the chronology of events noting as follows:



The case highlights relevant considerations regarding the use of corporate trustees and compliance with the terms of the trust instrument. Arguments that the appointment of the corporate trustee was a fraud on a power were unsuccessful. In this regard also see Shaky Ground, which considers whether the exercise of a power to appoint and remove beneficiaries is a fraud on a power.
References:
- Legler v Formannoij [2021] NZHC 1271
- Jacomb v Jacomb [2020] NZHC 1764
- Grand View Private Trust Company Ltd v Wong Civil Appeal No 5A of 2019
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