The Courts inherent jurisdiction examines the trustees exercise of discretion is limited to cases in which The trustees have reasons for the exercise; or the beneficiary can assert an exercise of discretion in bad faith or for an improper purpose; or the beneficiary can attack the exercise as not having been a real and genuine consideration of the exercise. [1984] VR 161 Karger v Paul – The exercise of discretion will not be examined by the Court if the discretion is exercised in good faith upon real and genuine consideration and in accordance with the purpose for which the discretion was conferred The Court will only look to evidence of the inquiries made by the trustees, the information they had, and the reason for, and manner of, exercising their discretion ensuring that these three essential components are present’ [1992] MC 148 Meat Industry Superannuation Fund Pty Ltd v Pertrucelli – The limits of the Courts review function are: Whether the reasons relate to or are relevant to Relate to Discretion being exercised - the discretion being exercised. Whether the reasons were arrived at in good faith and Arrived at in Good Faith - without ulterior purpose Whether the reasons reasonably support the conclusion Reasons support conclusion - It is open to the to look at evidence of the Information available to the Trustee - inquires made by trustees and the information they had and the manner of the exercise of their discretion, but only so far as to assess the viability of the exercise, not to impugn or replace it. It is not open to the Court to Cannot examine reasons for exercising discretion - examine the reasons for the purpose of exercising its own discretion. It is not open to the Court to examine the factual situation for the purposes of substituting its own discretion for that of the trustee because the Court might consider the trustee unwise or imprudent. The reviewable discretions that which was Can only review the exercised discretion - exercised the trustees at the time. Trustees Duties
The Courts inherent jurisdiction examines the trustees exercise of discretion is limited to cases in which The trustees have reasons for the exercise; or the beneficiary can assert an exercise of discretion in bad faith or for an improper purpose; or the beneficiary can attack the exercise as not having been a real and genuine consideration of the exercise. Karger v Paul [1984] VR 161 – The exercise of discretion will not be examined by the Court if the discretion is exercised in good faith upon real and genuine consideration and in accordance with the purpose for which the discretion was conferred The Court will only look to evidence of the inquiries made by the trustees, the information they had, and the reason for, and manner of, exercising their discretion ensuring that these three essential components are present’ Meat Industry Superannuation Fund Pty Ltd v Pertrucelli [1992] MC 148 – The limits of the Courts review function are: Relate to Discretion being exercised - Whether the reasons relate to or are relevant to the discretion being exercised. Arrived at in Good Faith - Whether the reasons were arrived at in good faith and without ulterior purpose Reasons support conclusion - Whether the reasons reasonably support the conclusion Information available to the Trustee - It is open to the to look at evidence of the inquires made by trustees and the information they had and the manner of the exercise of their discretion, but only so far as to assess the viability of the exercise, not to impugn or replace it. Cannot examine reasons for exercising discretion - It is not open to the Court to examine the reasons for the purpose of exercising its own discretion. It is not open to the Court to examine the factual situation for the purposes of substituting its own discretion for that of the trustee because the Court might consider the trustee unwise or imprudent. Can only review the exercised discretion - The reviewable discretions that which was exercised the trustees at the time. Trustees Duties
Trusts_Summary.docx