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.

Sign in or Register to continue reading this article

Sign in

Register

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

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

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.

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

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

Turnover (£m): 116.70
No. of lawyers: 405