Re Saunders Nominees Pty Ltd

The matter of Re Saunders Nominees Pty Ltd involved a dispute concerning the directions given to trustees under the Trustees Act 1962 (WA). The case was heard before the Supreme Court of Western Australia. The primary issue before the court was whether the trustee should be directed to distribute the trust property in a particular manner, as sought by certain beneficiaries.

The court needed to consider the specific circumstances of the trust and the discretion afforded to trustees under section 92 of the Trustees Act. The legal issue was whether the trustee should follow the instructions of the beneficiaries or exercise its independent judgment in managing the trust property. The court assessed the application for directions by weighing the statutory provisions against the unique facts of the trust.

In its judgment, the court determined that the trustees were to be directed to distribute the trust property in accordance with the specific directions sought by the beneficiaries. The court found that the trustees had a responsibility to act in the best interests of the beneficiaries, and in this instance, it was appropriate to give the directions as requested. The court noted that while the trustee was not bound to follow the beneficiaries' instructions blindly, it had to consider their interests in its decision-making. The court left the door open for the trustee to make further submissions regarding other directions sought, but did not grant them at that time.

The final orders of the court mandated that the trustee distribute the trust property in the manner specified by the beneficiaries, while also permitting the trustee to seek further directions in relation to other issues, subject to the court's discretion.