In re Denley’s Trust Deed: ChD 1969

The trustees of land in Gloucestershire were to maintain the land as a sports ground for the benefit of the employees of a company and also for ‘such other person or persons (if any) as the trustees may allow to use the same . . .’ The Deed contained a perpetuity clause providing that if (a) the number of employees subscribing 2d per week each should be less than 75% of the workforce, or (b) if the land was no longer required as a sports ground, or (c) if the company went into liquidation, then the trustees were to convey the land to the General Hospital Cheltenham or as it should direct. The court was asked whether the trust and the gift over were valid. The company argued that the trust was invalid because of the absence of certainty as to beneficiaries, and the fund was therefore held for the company. For the employees it was argued that the trust was valid, but the gift over was invalid. It was held that the trust and the gift over were valid. ‘Where, then, the trust, although expressed as a purpose, is directly or indirectly for the benefit of an individual or individuals, it seems to me that it is in general outside the mischief of the beneficiary principle. . . The trust in the present case is limited in point of time so as to avoid any infringement of the rule against perpetuities and . . . it does not offend against the beneficiary principle; and unless, therefore, it is void for uncertainty, it is a valid trust. As it is a private trust and not a charitable one, it is clear that, however it be regarded, the individuals for whose benefit it is designed must be ascertained or capable of ascertainment at any given time . . ‘
Goff J
[1969] 1 Ch 373, [1968] 3 All ER 65
England and Wales
Cited by:
CitedHunt and Another v McLaren and others ChD 4-Oct-2006
Land had been given to a football club under a trust for its exclusive use as such. That land was sold and a new ground acquired and a stadium built, but the land was subject to restrictive covenenats limiting its use to sports, which considerably . .

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Updated: 11 April 2021; Ref: scu.220237