Categories:Corporate,UK

Clarity Guide 8: trustee protection — exoneration and indemnity clauses

Mistakes can happen, and individual and corporate trustees can be held liable for a breach of trust, whether it was deliberate, negligent or innocent. This guide from Nabarro explains the differences between exoneration and indemnity clauses in a scheme’s trust deed and rules.

Exoneration clauses (also known as exemption clauses) operate so that a trustee is not liable to the scheme’s beneficiaries for any breach of trust (unless there has been actual fraud or dishonesty). They can cover a wide range of conduct, including: “negligence”; “gross negligence”, innocent breaches and “wilful default”. The precise wording of an exoneration clause, and so the scope of trustee protection, will vary from scheme to scheme (if included at all).

The Courts have (repeatedly) held that exoneration clauses cannot exempt trustees from liability arising because of “actual fraud” or dishonesty…

If you are registered and logged in to the site, click on the link below to read the rest of the Nabarro briefing. If not, please register or sign in with your details below.

Briefings from Nabarro

View more briefings from Nabarro

Analysis from The Lawyer

  • pro neg

    Professional negligence: Claims vs reality

    Clients are more willing to bring claims against professional service providers but the risk to defendants is not as dramatic as it might seem 

  • Google HQ

    Number crunching: Nabarro’s real estate

    Real estate continues to be the key money spinner for Nabarro, which has always been known for its work in the UK property market, (although) last year results were up across the firm.  Google’s ...

View more analysis from The Lawyer

Overview

Lacon House
84 Theobald's Road
London
WC1X 8RW
UK
http://www.nabarro.com

Turnover (£m): 116.30
No. of Lawyers: 360