Re Dion Investments Pty Ltd

The appeal concerned the application of section 81 of the *Trustee Act 1925* (NSW), which grants the court power to confer upon a trustee any power the trustee might have had if the trust instrument had contained express provisions for the purpose. The dispute revolved around whether this statutory power extended to authorising a trustee to amend the terms of a trust instrument, and if so, under what circumstances.

The primary legal issue before the Court of Appeal was whether the amendment of a trust instrument constituted a "transaction" within the meaning of section 81(1) of the *Trustee Act 1925* (NSW). The court was also required to consider whether conferring a power to amend the trust instrument would be considered "expedient in the management or administration of the trust property" as required by the section.

The court reasoned that while the amendment of a trust instrument could be considered a "transaction," the court's jurisdiction under section 81 was not to be exercised lightly. It held that a general power for a trustee to alter the terms of a trust at will could not be considered expedient. However, the court found that conferring specific and limited powers to amend the trust instrument, particularly for the purpose of efficient tax management, could be considered expedient and thus fall within the court's jurisdiction under section 81.

The appeal was allowed to the extent that the appellants were permitted to bring in short minutes of an order or orders under section 81(1) of the *Trustee Act 1925* (NSW) in conformity with the court's reasons. The final formulation of such orders was to be dealt with on the papers, and the costs of the proceedings in the Court of Appeal were ordered to be paid out of the assets of the Dion Family Trust.