Campbell v T. L. Clacher No. 2 Pty Ltd

The case of Campbell v T. L. Clacher No. 2 Pty Ltd involved a dispute between the beneficiaries of the Clacher Family Trust and the trustee, T. L. Clacher No. 2 Pty Ltd, regarding the validity of certain resolutions and transfers made by the trustee. The dispute was heard in the Supreme Court of Queensland. The primary issue before the court was whether the trustee, T. L. Clacher No. 2 Pty Ltd, made certain resolutions and transactions in breach of trust. Specifically, the court needed to determine whether the resolutions made by the trustee were attended by a genuine and proper consideration of the discretionary power, especially in light of any unconscionable conduct to which the trustee may have been subjected.

The court found that the trustee, who was also the sole director of the company, was subject to unconscionable conduct by certain beneficiaries. This conduct influenced the trustee's decisions to make distributions to another trust, which was managed by one of those beneficiaries. The court concluded that the resolutions made by the trustee were not attended by a real and proper consideration of the discretionary power due to the influence of the unconscionable conduct. Consequently, the resolutions and the resulting transfers were deemed invalid and in breach of trust.

In light of these findings, the court ordered the removal of the trustee from their position. It also directed the appointment of a new trustee within 21 days, or the Public Trustee of Queensland if no other appointment was made. Furthermore, the court mandated the return of the transferred assets to the Clacher Family Trust, required the production of relevant records, and outlined the process for determining costs. This decision underscores the importance of trustees acting in the genuine interests of the beneficiaries and the court's willingness to intervene where there is evidence of improper influence or lack of proper consideration in the exercise of discretionary powers.