An Injuction to Prevent an Anticipated Breach of Trust

Beneficiaries may seek an injunction against a Trustee to restrain the Trustee from committing a Breach of Trust or to compel the Trustee to perform the Trustee’s duty as a Trustee. An injunction may also be sought against a third party such as an agent (eg a Fund Administrator) who has control over trust property {Ackerly v Palmer [1910] V.L.R 339}.

Injunctions have been issued in cases where there has been a proposed distribution of trust funds in contravention of the trust instrument {Fox v Fox (1870) L.R. 11 Eq. 142.}

Beneficiaries can also seek an injunction to prevent a director of a corporate trustee from committing a breach of the director’s statutory duties of honesty, reasonable care and diligence {Section 232 and Section 1324 of the Corporations Act 2001}.

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