Essays on Duties, Powers, and Responsibilities of Trustee Directors - Green v Wilden Pty Ltd Case Study

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The paper "Duties, Powers, and Responsibilities of Trustee Directors - Green v Wilden Pty Ltd " is a perfect example of a finance and accounting case study. This paper discusses an Australian case; Green v Wilden Pty Ltd that was decided in 2009. Wilden directors, Mr. Chesson and Mr. Denboer failed to disclose to the Green parties the particular source of the funds used to acquire additional units for the Balga Trust by Benrone and Callao. The Wilden directors also failed to disclose the attempts and reasons for the selling of the units to non-existing unitholders (Supreme Court of Western Australia, 2009 pg. 10).

It was found that the Wilden directors acted fraudulently and in contravention of the Green interests to consciously cause financial disadvantages to the Green Parties and cause financial gains to Benrone and Callao. The directors, in this case, passed units allotment and options to specific family companies in pursuit of collateral personal gains and, thus, the reason for failure to fully disclose the details of the transaction. The directors, therefore, acted in bad faith and their actions amounted to breach of duties and responsibilities.

Their plea in favor of section 1318 of the Corporations Act to be fairly excused was fruitless as the trial judge disregarded the plea on grounds that their actions amounted to breach of fiduciary duties leading to fraud in equity and, therefore, infeasible to “ ought to fairly excuse” under section 1318 of the Act (Wong, 2009 pg17). The directors also acted dishonestly. Duties, Powers, and Responsibilities of Trustee Directors The directors of a trustee in Australia have various duties and roles as enumerated in the Superannuation Industry (Supervision) Act of 1993 (SIS) and in the Corporations Act 2001.

The director’ s functions are also provided by the common law. They also have routine functions of ensuring successful operations for the trust in a proper business-like manner. These functions include supervisory and policy-making responsibilities (Marshall and Ramsay, 2012 pg 295-299, Ghosh, 2012 pg 24).

References

Carter, T., S. and Prendergast, R., M. 2011. Duties and Liabilities of Directors and Officers of Charities and Non-Profit Organizations, The Law Society of Upper Canada Emerging Issues in Directors’ and Officers’ Liability 2011, 1-59, Available at:-

http://www.carters.ca/pub/article/charity/2011/tsc0329.pdf, Accessed 05/28/2017.

Hazen, T., L and Hazen, L., L. 2012. Punctilios and Nonprofit Corporate Governance-A Comprehensive Look at Nonprofit Directors’ Fiduciary Duties, Journal of Business Law, 14(2), 347-416, Available at:-

https://www.law.upenn.edu/journals/jbl/articles/volume14/issue2/Hazen14U.Pa.J.Bus.L.347(2012).pdf, Accessed 05/28/2017

Ghosh, D. 2012. Fixing the Fiduciary Obligation: The Prescription-Proscription Dichotomy, Canberre Law Review, 11(1), 24-32. Available at:

http://www.austlii.edu.au/au/journals/CanLawRw/2012/3.pdf, Accessed 05/28/2017.

Heydon, H., D. 2014. Modern Fiduciary Liability: The Sick Man of Equity? Trusts & Trustees, 20(10) 1006-1022, Available at:

https://academic.oup.com/tandt/article-pdf/20/10/1006/4596495/ttu148.pdf,Accessed 05/28/2017

Kutcher, R., A. 2012. Breach of Fiduciary Duties, 1-49, Available at:

http://apps.americanbar.org/abastore/products/books/abstracts/5310344_chap1_abs.pdf, Accessed 05/28/2017

Langford, R., T. and Ramsay, I., M. 2014. Conflicted Directors: What is Required to Avoid a Breach of Duty, 108-127, Available at:

http://law.unimelb.edu.au/__data/assets/pdf_file/0006/1709502/13-Conflicteddirectors-whatisrequiredtoavoidabreachofdutyJnlEquity20142.pdf, Accessed 05/28/2017.

Marshal, S. and Ramsay, I. 2012. Stakeholders and Directors’ Duties: Law, Theory and Evidence, UNSW Law Journal, 291-316, Available at:

http://www.unswlawjournal.unsw.edu.au/sites/default/files/12_marshall_2012.pdf, Accessed 05/28/2017

Supreme Court of Western Australia: Wilden Pty Ltd -v- Green (2009) WASCA 38, Judgements

http://decisions.justice.wa.gov.au/supreme/supdcsn.nsf/PDFJudgments-WebVw/2009WASCA0038/%24FILE/2009WASCA0038.pdf , Accessed 05/27/2017

White, R. W. 2010. Trusts- An Australian Perspective, 1-59, Available at:

http://www.austlii.edu.au/au/journals/NSWJSchol/2010/10.pdf, Accessed 05/27/20017

Wong, S. 2009. Forgiving a Director’s Breach of Duty: A Review of Recent Decisions. [Online]. http://law.unimelb.edu.au/__data/assets/pdf_file/0006/1709772/58-stevenwong_essay_6_May_20091.pdf, Accessed 05/24/17.

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