Investec & ors v Glenalla & ors — the risks faced by the trustees of an insolvent trust
The recent judgment in the Guernsey case of (Investec & ors v Glenalla & ors) deals with the risks faced by the trustees of an insolvent trust.
There were two sets of proceedings in this case, known as Guernsey 1 and Guernsey 2. Guernsey 1 was the main claim, which took place in open court. Guernsey 2 was in private and comprised a number of Beddoe/Public Trustee v Cooper-type applications in which approval or guidance was sought from the court in relation to the continuing administration of the trust and its assets. In Guernsey 2, Ogier represented the current trustees, Rawlinson and Hunter (R&H), and played a major role in a large number of these applications.
Guernsey 1 was concerned with a large trust structure called the Tchenguiz Discretionary Trust (TDT). The TDT was a Jersey law discretionary trust, but the trustees were Investec and Bayeux in Guernsey, which ran and administered the trust from Guernsey. The trust contained an indemnity clause stating that no trustee should be liable for any loss to the trust fund or its income unless the loss should arise by reason of that trustee’s own fraud, wilful misconduct or gross negligence…
Click on the link below to read the rest of the Ogier briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Ogier
News from The Lawyer
Briefings from Ogier
These two cases are helpful in terms of how the court sees the inter-relationship between the new article 47 test for mistake and the pre-existing provision of the TJL at article 11.
On 24 November 2014 Guernsey’s Legislation Select Committee passed the Companies (Guernsey) Law, 2008 (Amendment) Ordinance, 2014 with immediateeffect.