A Limited -v- B, C Limited, D and E (Companies) [2013] JRC 075 (17 April 2013)

A Limited -v- B, C Limited, D and E (Companies) [2013] JRC 075 (17 April 2013)

The Court's jurisdiction under Article 46 of the Foundations (Jersey) Law 2009 was properly invoked by A Limited as council member. Given the lack of detailed knowledge of asset background, absence of liquid funds, and B's ability to defend, it is appropriate for the F Foundation to adopt a neutral stance in the Jersey proceedings, complying with court orders but not actively defending the claim.

Citation
[2013] JRC 075
Parties
Applicant: A Limited; Respondent: F Foundation; Respondent: B; Respondent: C Limited; Respondent: D; Respondent: E; Interested Party: N Limited
Jurisdiction
Jersey
Judgment Date
17 April 2013
Procedural Posture
Application for Directions Under Article 46 of the Foundations (jersey) Law 2009 / Judgment on Application
Outcome
Application granted
Legal Topics
Court Supervision of Foundations, Neutrality in Litigation, Fiduciary Duties, Administration of Foundation Assets
Trusts and Foundations Company Law Wealth Management Court Supervision of Foundations Neutrality in Litigation Fiduciary Duties Administration of Foundation Assets

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Parties

A Limited

Applicant

F Foundation

Respondent

B

Respondent

C Limited

Respondent

D

Respondent

E

Respondent

N Limited

Interested Party

Procedural Posture

Application for Directions Under Article 46 of the Foundations (jersey) Law 2009 / Judgment on Application

Legal Issues

  1. 1 Whether the Court's jurisdiction under Article 46 of the Foundations (Jersey) Law 2009 was properly invoked by A Limited as council member
  2. 2 Whether it is appropriate for the F Foundation to adopt a neutral stance in litigation
  3. 3 Scope of council members' duties under the Foundations Law

Ratio Decidendi

The Court's jurisdiction under Article 46 of the Foundations (Jersey) Law 2009 was properly invoked by A Limited as council member. Given the lack of detailed knowledge of asset background, absence of liquid funds, and B's ability to defend, it is appropriate for the F Foundation to adopt a neutral stance in the Jersey proceedings, complying with court orders but not actively defending the claim.

Court Disposition

Application granted

Orders

  • A Limited is directed to use reasonable endeavours as council member to procure that the F Foundation adopt a neutral role in the Jersey proceedings, complying with any orders the trial court may make.
  • If the Guardian or other council members do not cooperate, A Limited will be protected by the direction given to it.