Right to Contribution from Co-Trustees

Where a Breach of Trust is committed the Trustees are equally liable in the eyes of equity. Their liability is joint and several, so that each Trustee is liable for the entire amount, and a judgement against the Trustees many be enforced against one of them without regard to any rights of contribution that a trustee may have {Goodwin v Duggan (1996) 41 NSWLR 158 at 162,166}.

Given the large sums of money held by the Trustees of Superannuation Funds if Trustees have acted dishonestly or have been grossly negligent they will not be indemnified from the assets of the fund and so will face personal bankruptcy.

The Commonwealth Government MAY provide financial assistance if sufficient moneys cannot be reclaimed from defaulting Trustees and those who assist then commit fraudulent or grossly negligent Breaches of Trust.

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