13 Apr Trust And Indemnity Agreement
(b) if an agent is authorized to enter into the contract but is not authorized to do so because a necessary procedure has not been followed (. B, for example, an insufficient number of agents who entered into the contract); 284 You can learn more about the rights and restrictions of trustees by continuing to explore our website. See Vicki Ammundsen “The liability of the agent – limited to assets or not?” New Zealand Tax Updater (CCH, April 23, 2009) at 1, Sovereign Homes Ltd v. Meurant HC Auckland CIV-2006-404-7394, May 15, 2007. … since creditors can only access fiduciary assets by insinuating the agent`s right to compensation (unless they are secured creditors), the right to compensation is an integral part of an agent`s office and is inseparable from the agent`s office. Trusts are not corporations. The “legal face” of a trust is the agent (s). Agents are the rightful owner of the trust and the fiduciary responsibility for trust debts. Unsecured creditors of an agent are not directly entitled to the trust, unlike secured creditors who are entitled by their security. It is the agent who is personally responsible for the debts that have been duly incurred in the management of the trust. Therefore, the principal right of creditors is directed against the agent itself, not against the trust. Creditors can recover directly from the agent if the agent has sufficient assets, along with other assets held in trust.
However, if the agent has little or no own assets available to repay the creditor`s debts, the creditor must ensure the trust by transfer. The assignment is the procedure by which a person, in this case the creditor, replaces another person, here the agent, so that the right of compensation of the trust trust of the trust of the trust is used to satisfy the debt of the creditor278.278 The right of cancellation is to avoid the unfairness of a beneficiary who receives damage from a credit. – which has been granted to the agent and which has not been reimbursed.279 This is of particular importance in the context of trade. because an agent`s agent has very little or no assets that are not held in trust. The Goodwin v. Duggan-Ors case is an example of a situation in which an agent was entitled to full compensation from a co-director. Ms. Goodwin and her brother were the directors under a will. Ms. Goodwin`s brother abused trust funds for his own benefit. While both agents were held liable at trial, Ms. Goodwin was entitled to full compensation from her brother in the appeal process because he had personally received the trust funds and converted them for his own benefit.
Butler Equity and Trusts, on 264, at 131, referring to Hardoon v Belilios  1 Ch 342. However, the precise limits of the compensation described above are not entirely certain, for example. B if the right of transfer of the creditor applies to the right of compensation of the agent vis-à-vis the beneficiaries: cf. Butler at 444-445. There is a debate as to the extent to which the attorney`s right to compensation through the fiduciary instrument can be excluded or restricted. 288 The other view is that it should not be excluded because “the right to compensation of assets is an incident of the fiduciary office and is inseparable from it.289 Tesiram considers it difficult to regard section 38, paragraph 2, as a power that can be amended or excluded under paragraphs 2, paragraph 4 and 2 paragraph 5; He considers that there is no basis for excluding the application of paragraph 38, paragraph 2, and that attempts to do so are likely ineffective.302 An agent may reimburse himself or compensate or discharge from the trust all expenses that have reasonably been incurred in the course of fiduciary activity or the performance of trusts or powers; … Although the normal position is one of the same contributions, there are limited circumstances (read extraordinary) where one agent has another