Trustees' Powers and Duties and Personal Liability for Breach - General Duties of Trustees - Duty #9: Duty to Exercise Care and Skill

4 important questions on Trustees' Powers and Duties and Personal Liability for Breach - General Duties of Trustees - Duty #9: Duty to Exercise Care and Skill

Statutory Duty of Care

Statutory DOC introduced in the TA 2000 does not apply in all situations and it can be excluded by trust instrument.

Controversy between Statutory DOC and Common Law DOC

There is controversy as to how far the statutory duty replicates or differs from the common law duty of care.

Schedule 1, DOC applies to a trustee when:

  1. Exercising the general power of investment
  2. Exercising the power to acquire land
  3. Entering into arrangements to exercise functions as an agent/nominee/custodian
  4. Exercising any power under section 15
  5. Exercising any power under section 19
  6. Exercising any power under section 22(1) or (3)
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Schedule 1, DOC does not apply to a trustee when:

7. The trust instrument shows that the duty is not meant to apply.

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