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Trustee Resolutions

This category contains 21 posts

Disclosure vs Discovery

Is a beneficiary more entitled to trust information pursuant to an application for discovery, rather than pursuant to a an application for disclosure? As a basic principle, courts do not permit discovery as a “fishing expedition.” However, as noted in Gavin v Powell at [41] “… the trustees’ obligations as to disclosure and a beneficiary’s right … Continue reading

To gift or not to gift – that is the question

The case of The Church of Jesus Christ of the Latter-Day Saints Trust Board v CIR considers whether donations made in connection with a missionary application are charitable gifts for the purposes of s LD1 of the Income Tax Act 2007. The crux of the matter for consideration is whether gifts made by church members … Continue reading

Costs bite when trustees fight

Trustees fall out, sometimes to the point where a working relationship is no longer possible. Applications to remove trustees are becoming an increasingly common occurrence. So, should trustees fight attempts to remove them? When is it appropriate to do so, and when not? And what are the potential consequences of misjudged opposition? The recent decision … Continue reading

More trustees sent to the naughty corner

Clement v Lucas concerns a family farming enterprise and illustrates the difficulties when beneficiaries cannot agree on how to give effect to the protections parents have put in place for the benefit of the beneficiaries. The contest at the heart of the matter was whether the trustees should distribute the trust assets equally between the … Continue reading

The curious story of the Angora cat

Para 438 in the decision of MezhProm Bank v Pugachev refers to a phenomenon in patent law known as the Angora cat problem first identified by Professor Franzosi, an eminent academic expert in the field: “Professor Mario Franzosi likens a patentee to an Angora cat. When validity is challenged, the patentee says his patent is … Continue reading

Disclosure request declined – 24 years a leap too far for a beneficiary who had already received 25%

As noted by Woolford J in para [1] Addleman v Lambie Trustee Limited relates to “an unfortunate dispute between sisters as to what level of disclosure is appropriate for the affairs of the Lambie Trust (the Trust)…” Prudence and Annette are sisters.  In1972 Annette broke her spinal cord diving into a tidal pool in Sydney … Continue reading

How afraid should we be of Clayton?

The Supreme Court decision in Clayton v Clayton changed the trust landscape.  But how afraid should we be?  Are all trusts vulnerable to Clayton-style challenge?  Or just the ones that push the envelope?  And, if the latter, how far can one push before there is a problem? A recent decision of Moore J has provided … Continue reading

$10,000 per year for contributions to trust

The decision in Judd v Hawkes Bay Trustee Company Limited (see Another tributary in the trickle of constructive trust cases) has been upheld on appeal. By way of background  Richard Hodgkinson and Michelle Judd were married for six and a half years. Over that period they lived in a property in Lane Road, Havelock North, … Continue reading

Positive exercise of discretion requried

In Shakespeare’s Henry IV, Part I when Prince Hal finds the cowardly Falstaff pretending to be dead on the battlefield, the prince assumes he has been killed. After the prince leaves the stage, Falstaff rationalizes “The better part of Valour, is Discretion; in the which better part, I haue saued my life” (spelling and punctuation … Continue reading

Is a resolution the record or the decision?

The terms minute and resolution are often used interchangeably and it is common for a trustee resolution to be only treated as final once signed – but is this correct?  What is a resolution?  A record of a decision or is the resolution the decision? I have previously considered whether a resolution requires that there be … Continue reading

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