Injunctions to Prevent and anticipated Breach of Trust

Beneficiaries may seek an injunction against a trustee to retrain the Trustee from committing a Breach of Trust or to compel the Trustee to perform the Trustee’s duty as Trustee {Dance v Goldingham (1873) LR 8 Ch App 902 at 911 per James LJ at, at 913 per Mellish LJ}.

Beneficiaries may 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}.

A Trustee may seek an injunction against a co-trustee {Baynard v Woolley (1855) 20 Beav. 583; 52 E.R. 729}

An injunction may also be sought against a third party such as an agent engaged by the Trustee (eg a Fund Administrator) {Ackerly v Palmer [1910] V.L.R. 306 at 325}.

Injunctions have been issued to restrain Breaches of Trust such as proposed distributions of trust funds in breach of the trust instrument {Fox v Fox (1870) L.R. 11 Eq. 142}

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