Re Safe Hands Plans Limited (in administration)

Re Safe Hands Plans Limited (in administration)

The Trust Deed expressly empowered the Administrators, acting as delegated trustees, to exercise a discretionary power of appointment (clause 4.8) during insolvency, including payment of funeral expenses for plan holders who died during the relevant period. The Court found the Administrators' decision to enter into the Agreement with Dignity was a proper exercise of that power, rational, and for the benefit of the beneficiaries as a whole. The objections based on pari passu distribution and legitimate expectation did not preclude approval, as the Trust Deed's express terms prevailed.

Parties
Applicant: Nedim Patrick Ailyan; Applicant: Ben Stanyon; Subject Company: Safe Hands Plans Limited (In Administration); Interested Party: Dignity Funerals Limited; Objectors: Plan Holders
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Insolvency Application / Judgment on Application for Approval/sanction of Agreement
Outcome
application granted
Legal Topics
Administration of Insolvent Trusts, Powers of Trustees, Pari Passu Distribution, Court Approval of Trustee Decisions
Insolvency Trusts Administration of Insolvent Trusts Powers of Trustees Pari Passu Distribution Court Approval of Trustee Decisions

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Parties

Nedim Patrick Ailyan

Applicant

Ben Stanyon

Applicant

Safe Hands Plans Limited (In Administration)

Subject Company

Dignity Funerals Limited

Interested Party

Plan Holders

Objectors

Procedural Posture

Insolvency Application / Judgment on Application for Approval/sanction of Agreement

Legal Issues

  1. 1 Whether the Trust Deed empowered the Administrators to enter into and implement the Agreement with Dignity Funerals Limited for payment of funeral expenses from Trust funds during insolvency.
  2. 2 Whether the Court should approve or sanction the exercise of the power under the Trust Deed to pay Dignity Funerals Limited.
  3. 3 Whether the pari passu principle or legitimate expectations of plan holders preclude such payment.

Ratio Decidendi

The Trust Deed expressly empowered the Administrators, acting as delegated trustees, to exercise a discretionary power of appointment (clause 4.8) during insolvency, including payment of funeral expenses for plan holders who died during the relevant period. The Court found the Administrators' decision to enter into the Agreement with Dignity was a proper exercise of that power, rational, and for the benefit of the beneficiaries as a whole. The objections based on pari passu distribution and legitimate expectation did not preclude approval, as the Trust Deed's express terms prevailed.

Court Disposition

application granted

Orders

  • The Agreement with Dignity Funerals Limited is approved/sanctioned under the Trust Deed; payment of £615,629.65 from Trust funds to Dignity for 416 funerals is authorised.