The Federal Court of Australia decision in Fotios v Helios Corporation Pty Ltd (No 3) has deviated from the Privy Council’s recent decision in Equity Trust (Jersey) Ltd v Halabi , which held by a majority that trustees and former trustees shared liability pari passu on insolvency (see No ranking between trustees).
It remains to be see what approach will be taken by the appellate courts. The position in Fotios is succinctly summarised at [11]:
References:
- Francis (Trustee), in the matter of Fotios (Bankrupt) v Helios Corporation Pty Ltd (No 3) [2023] FCA 251
- Equity Trust (Jersey) v Halab and ITG v Fort Trustees (Guernsey) 2022 UKPC 36
- Butterfield v Public Trust [2017] NZCA 367
Matters of Trust 
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