Sovereign Trustees Ltd & Anor v Glover & Ors

Sovereign Trustees Ltd & Anor v Glover & Ors

The court found that the 10th February 1998 meeting and resolution did not effect an amendment to the scheme rules but merely adopted a policy to be implemented later. There was no evidence of proper advice, company consent, or notification to members, and the formal requirements for amendment were not satisfied. Therefore, the money purchase section was not validly created.

Parties
Claimant: Sovereign Trustees Limited; Claimant: Stanley Allatt; Defendant: Philip F Glover; Defendant: John Michael Paylor; Defendant: Craig Monty
Jurisdiction
England and Wales
Judgment Date
19 July 2007
Procedural Posture
Civil (pensions/trusts) / Judgment on Preliminary Issue (validity of Scheme Amendment)
Outcome
Declaration (negative) – money purchase section not validly created
Legal Topics
Amendment of Pension Scheme Rules, Trustee Powers and Duties, Procedural Validity of Trustee Resolutions
Trust Law Pensions Law Amendment of Pension Scheme Rules Trustee Powers and Duties Procedural Validity of Trustee Resolutions

Case Brief

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Parties

Sovereign Trustees Limited

Claimant

Stanley Allatt

Claimant

Philip F Glover

Defendant

John Michael Paylor

Defendant

Craig Monty

Defendant

Procedural Posture

Civil (pensions/trusts) / Judgment on Preliminary Issue (validity of Scheme Amendment)

Legal Issues

  1. 1 Whether the money purchase section of the Oldham Signs Pension Scheme was validly created so as to give members an entitlement under its terms in respect of benefits arising from transfer payments or contributions.

Ratio Decidendi

The court found that the 10th February 1998 meeting and resolution did not effect an amendment to the scheme rules but merely adopted a policy to be implemented later. There was no evidence of proper advice, company consent, or notification to members, and the formal requirements for amendment were not satisfied. Therefore, the money purchase section was not validly created.

Court Disposition

Declaration (negative) – money purchase section not validly created

Orders

  • It is declared that the money purchase section of the Oldham Signs Pension Scheme was not validly created so as to give members an entitlement under its terms in respect of benefits arising from transfer payments or contributions.