Company shares were held in trust for the grandchildren of the settlor whose two sons were the trustees who effectively ran the company. The plaintiffs proposed the transfer of trust property to the company. The beneficiaries said that such a transaction was voidable at their instance since it breached the rule against self dealing.
Held: The rule was to be strictly applied where the trustees’ concurrence was required in a transaction in which he had an interest. Without an express authorisation in the trust instrument, such a transacion could not stand against the challenge of a beneficiary.
Judges:
Vinelott J
Citations:
[1986] Ch 99, [1985] 2 All ER 721
Jurisdiction:
England and Wales
Cited by:
Cited – Jones and others v Firkin-Flood ChD 17-Oct-2008
The trustees had contracted to sell shares in a private company held within the estate. A family member now claimed that they were held in trust after a settlement of a possible challenge to the will based in lack of testamentary capacity and undue . .
Lists of cited by and citing cases may be incomplete.
Trusts
Updated: 02 May 2022; Ref: scu.277072