Global Custodians Ltd v Mesh

In the case of Global Custodians Limited v Mesh, the dispute arose between the settlor of a trust, the trustee, and a beneficiary who sought to assign her interest in the trust. The matter was heard in the Supreme Court of Victoria. The primary issue before the court was the extent of the settlor's power to amend the trust deed and whether there were any limits on this power. Additionally, the court needed to determine the nature of a beneficiary's right to assign their interest in the trust, and whether such an assignment entitled the assignee to demand an account from the trustee.

The court began by examining the language of the trust deed, which granted the settlor the power to amend the trust deed. The court considered whether this power was absolute or whether there were any implied limitations. The court held that the power was not absolute and could be subject to equitable limitations. The court noted that the settlor's power to amend the trust deed could not be used to defeat the beneficial interests of the beneficiaries. The court found that the settlor had exceeded the scope of the power by attempting to amend the trust deed in a way that would have deprived the beneficiaries of their rights.

The court also considered the nature of a beneficiary's right to assign their interest in the trust. The court held that an assignment of a beneficiary's interest in a trust was a transfer of the beneficiary's equitable interest in the trust property. The court found that such an assignment did not entitle the assignee to demand an account from the trustee unless the assignment expressly provided for such a right. The court noted that the assignment deed in this case did not contain any such provision.

The court ordered that the settlor's amendment to the trust deed was invalid, and that the trust deed remained in its original form. The court also ordered that the assignee was not entitled to demand an account from the trustee, as the assignment deed did not provide for such a right.