Re T and the Protected Estates Act [2000] NSWSC 1022

Re T and the Protected Estates Act [2000] NSWSC 1022

The direction was granted because L Pty Ltd's affairs were commercially integral to management of T's estate, the proposed directors were skilled accountants from a firm trusted by T for many years, the appointment of two accountants allowed each to keep watch on the other, and the remuneration arrangements limited the manager to no greater charge than for ordinary time as manager while allowing the co-director proper time-based remuneration.

Jurisdiction
Australia
Judgment Date
31 October 2000
Procedural Posture
Application for Directions Under S 12 of the Protected Estates Act 1983 / Final Basis; Reasons for Directions
Outcome
Direction sought granted on conditions as to remuneration.
Legal Topics
["manager of Incapable Person's Estate" 'appointment of Manager as Company Director' 'trustee Fiduciary Conflict' 'director Duties of Skill and Care' 'remuneration of Fiduciary']
['equity' 'protective Jurisdiction' 'trusts' 'corporations' 'mental Health and Protected Estates'] ["manager of Incapable Person's Estate" 'appointment of Manager as Company Director' 'trustee Fiduciary Conflict' 'director Duties of Skill and Care' 'remuneration of Fiduciary']

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Procedural Posture

Application for Directions Under S 12 of the Protected Estates Act 1983 / Final Basis; Reasons for Directions

Legal Issues

  1. 1 ['Whether the manager of an incapable person should be empowered to appoint himself and another person as directors of a company controlled by the incapable person before her disability.' 'Whether a manager or trustee should personally become a director of a company controlled by the estate or trust, having regard to fiduciary duties and duties of care.' 'Whether the proposed appointments and remuneration arrangements adequately addressed the risks of conflict and lack of oversight.']

Ratio Decidendi

The direction was granted because L Pty Ltd's affairs were commercially integral to management of T's estate, the proposed directors were skilled accountants from a firm trusted by T for many years, the appointment of two accountants allowed each to keep watch on the other, and the remuneration arrangements limited the manager to no greater charge than for ordinary time as manager while allowing the co-director proper time-based remuneration.

Court Disposition

Direction sought granted on conditions as to remuneration.

Orders

  • ['R may requisition a meeting of shareholders of L Pty Ltd at which R and a present partner in the firm of accountants will be appointed directors.' 'The direction is given on the basis that the manager does not charge for his time as a director on any greater basis than he charges for his ordinary time as manager.'...