TRUSTEE POWERS AND DUTIES

TRUSTEE POWERS AND DUTIES

1. POWERS (discretionary)

   • Maintanence
   • Advancement
   • Buy land

2. DUTIES (must be exercised)

   • Fiduciary
     • Good Faith
     • No Profit
       • OTHER UNAUTHORISED PROFITS
         • Robinson v Pett - Administer gratuitously
         • Boardman v Phipps - liable for profits although were honest
         • Changes in the law
           • Personal or Proprietary remedy?
             • Lister v Stubbs - No proprietary basis therefore no proprietary remedy
               • Reid departed from Stubbs - held on constructive trust for the crown. Templemen talks of 'good man theory' ands how bribery is an evil practice
                 • Sinclair - reverts back to stubbs. Reid received critiscim. Proprietry remedy is unncecessary as property was never owned by the principal in the firs
                   • European Ventures v Mankarious
                     • Neuberger's three categories (Sinclair) - no proprietary remedy unless falls under
                       • 1. Asset or money is or has been the property of the fiduciary principle
                       • 2. Trustee acquired money/asset by taking advantage of an opportunity that was properly that of the B
                       • 3. Other
       • SECRET BRIBES
         • Huntingdon Cooper - he will be under a duty to account in equity
         • Reading v AG - bribe money but Fiduciary was still liable to account
       • Self dealing
         • Titto v Wadell - transaction becomes voidable
           • Wright v Morgan/Kane v Radley Kane/Moore - strict rule applied
         • Ex Parte James - Beneficiaries informed consent
         • Remedy? - let the transaction stand or avoid trasnaction
     • No Conflict
       • Bray v Ford - "Inflexible rule of equity" per Lord Herschell
       • Keech v Sandford - Lord King - Too high a risk that position could be abused
     • Not act for own benefit or 3rd party
   • Skill and Care
     • Trustee Act 2000 S1
     • s3 and 4 apply to investment
   • Instrument