Fiduciary duties

what is self-dealing? Is a self-dealing transaction automatically void?

a trustee buying trust property for themselves a trustee selling trust property to themselves No - bens can set aside any self-dealing transaction within reasonable time though

what are available defences to personal profit

trust declaration allows it trustee gave full disclosure to beneficiaries and they are all adults and consented to it Court/statute allows it

what claims can Bs bring if personal profits were not authorised?

personal claim for account of profits proprietary claim to recover replacement property

when is a trustee allowed/not allowed remuneration

Only professional trustees are allowed remuneration and only if there are other trustees who consent in writing sole professional trustees and non professional trustees are not entitled to remuneration

can trustees take advantage of an opportunity which arose as a result of trust?

No - must pass it on to the trust even if trust cant get a benefit from it - and if they do they must account to trust - this includes commission for giving trusts business to a firm and directors salary earned as a result of shares owned by trust

what is a fiduciary duty?

act in the best interests of the principal - and not allow own interests to conflict

what is a fiduciary relationship?

one of loyalty, trust and confidence

what kind of things can breach FD?

self-dealing competition with trust recieving remuneration when not entitled any profits made from exploitation of opportunities which arise from trust

When is a trustee competing with trust?

set up a business which conflicts with any business owned by trust - must account for personal profits to trust

what are the consequences of a breach of fiduciary duty?

this is strict liability - so even if no loss to the trust they have breached their duty - and any personal profit made must be given to trust