A matter of trust: High Court rejects trust creditor claims against third party recipients of trust property

In a 4:3 split decision, the High Court of Australia clarified that a successor trustee does not owe a fiduciary duty to a former trustee in respect of the former trustee’s entitlement to indemnification from trust assets.[1] The High Court judgment confirms that former trustees (and their trust creditors) have no independent recourse against a […]

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Judgment against ‘pre-insolvency’ adviser for involvement in asset-stripping scheme

The Federal Court of Australia recently handed down a landmark judgment against a third party adviser for devising an asset-stripping scheme and breaching the creditor-defeating disposition provisions of the Corporations Act 2001 (Cth). A creditor-defeating disposition is a disposal of company property that prevents, hinders or significantly delays that property from becoming available for the […]

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