Former trustees should act fast to preserve the status quo 6 min read
A recent New South Wales Court of Appeal judgment has resolved a difficult question concerning the law of corporate trustees, and serves as a practical reminder of the difficulties faced, in particular, by insolvency practitioners appointed to insolvent former trustees.
In this Insight, we explain the takeaways from the judgment and what it means for corporate trustees and insolvency practitioners.
Key takeaways
- Although the law offers some protection to a former trustee to allow it to satisfy its right of indemnity, a successor trustee does not owe its predecessor a fiduciary duty.
- An important consequence of the successor trustee not owing a fiduciary duty is th…
Read the full article at: https://www.allens.com.au/insights-news/insights/2023/10/Corporate-trustees/