Re Londonderry's Settlement
1964 · [1965] Ch 918
Posted By lanbuk.com
- Facts
- Trustees of a discretionary settlement refused to show a the documents explaining their decisions.
- Issue
- Were they obliged to disclose their reasons?
- Held
- No. The Court of Appeal held that trustees need not give reasons for discretionary decisions, though beneficiaries can see documents in general.
- Principle
- Trustees need not disclose the reasons for exercising their discretions.
- Why it matters
- It protects the confidentiality of trustees' deliberations.
Words and Latin in this note
- Beneficiary
- A person entitled to the benefit of trust property in equity, who can make the trustees carry out the trust. Open the note.
- Trust
- An arrangement in which a trustee holds property at law but must use it for beneficiaries, or for a charitable purpose. The beneficiaries have the equitable interest. Open the note.
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