Abacus Trust Company (Isle of Man) Ltd Colyb Ltd & Anor [2001] EWHC B2 (Ch) (17 July 2001)

Abacus Trust Company (Isle of Man) Ltd Colyb Ltd & Anor [2001] EWHC B2 (Ch) (17 July 2001)

The deed of appointment executed on 3rd April 1998 is void ab initio because the trustees failed to consider relevant advice and the fiscal consequences of their action, which was a material consideration. Had they done so, the appointment would not have been made at that time. The principle in Re Hastings-Bass applies, rendering the appointment invalid.

Citation
[2001] EWHC B2 (Ch)
Parties
Claimant: Abacus Trustee Company (Isle of Man) Limited; Claimant: Colyb Limited; Defendant: NSPCC
Jurisdiction
England and Wales
Judgment Date
17 July 2001
Procedural Posture
Civil / First Instance Judgment
Outcome
declaration granted
Legal Topics
Trustee Powers, Breach of Fiduciary Duty, Capital Gains Tax, Hastings Bass Principle, Charitable Appointments
Trusts Taxation Trustee Powers Breach of Fiduciary Duty Capital Gains Tax Hastings Bass Principle Charitable Appointments

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Parties

Abacus Trustee Company (Isle of Man) Limited

Claimant

Colyb Limited

Claimant

NSPCC

Defendant

Procedural Posture

Civil / First Instance Judgment

Legal Issues

  1. 1 Whether the deed of appointment executed on 3rd April 1998 in favour of the NSPCC is void ab initio due to failure by trustees to consider relevant advice and fiscal consequences.
  2. 2 Whether the principle in Re Hastings-Bass applies to set aside the appointment for failure to consider relevant matters.

Ratio Decidendi

The deed of appointment executed on 3rd April 1998 is void ab initio because the trustees failed to consider relevant advice and the fiscal consequences of their action, which was a material consideration. Had they done so, the appointment would not have been made at that time. The principle in Re Hastings-Bass applies, rendering the appointment invalid.

Court Disposition

declaration granted

Orders

  • Declaration that the deed of appointment executed on 3rd April 1998 in favour of the NSPCC is void ab initio.