A bare trust arises where property is held by a person (the trustee) only for the purposes to hold until transferred in accordance with the beneficiary’s directions. Bare trusts can be a commercial convenience, but can also effect a remedy in circumstances when property might otherwise be lost due to the fungible nature of the … Continue reading
However, as the directors and trustees are one and the same, perhaps a difficult pill to swallow nevertheless. The case of Owens v Shaw is a little hard to make sense of given that the trustees of a trading trust, also traded through a company (on behalf of the trust) on account of one supplier who … Continue reading
In Bank of New Zealand v Rowley and Skinner  NZHC 2835 the High Court determined that it could have the jurisdiction to liquidate a trust. See Liquidation of trusts – more clever ways to winkle assets from trusts for the background facts. The matter has now been reconsidered, following service of the judgment referred to … Continue reading
The Matters of Trust report on Rea and Sargison v Russell has been updated to note the liquidators’ succesful appeal. See Rea and Sargison v Russell – trustee liability in the context of voidable transactions.
A trustee has come out on top against liquidators when the liquidators attempted to recover payments relating to investments made without that trustee’s knowlege. However, whether the beneficiaries will be as sanguine about matters as the court is not clear. See https://mattersoftrust.wordpress.com/trust-law-update/rea-and-sargison-v-russell-trustee-liability-in-the-context-of-voidable-transactions/