Re the Queensland Coal & Oil Shale Mining Industry Ltd

The case before the Supreme Court of Queensland involved an application by Queensland Coal and Oil Shale Mining Industry (Superannuation) Ltd., the corporate trustee for the Queensland Coal and Oil Shale Mining Industry (Superannuation) Fund. The primary issue was whether the court should approve an amendment to the Trust Deed and the applicant's articles of association to enable directors to be remunerated for their services. This was necessary as the fund had grown substantially, requiring a highly competent and experienced board of directors, and the trustees and directors desired to compensate them appropriately. The Trust Deed and the articles of the applicant were silent on the remuneration of directors. The applicant had already amended its articles to allow for such remuneration, subject to court approval.

The legal issues before the court were whether the court had the power to authorise the remuneration of trustees under the Trusts Act 1973 and if it was expedient to do so in the circumstances of this case. The court considered the historical perspective that trusteeship was seen as an honorary position, but noted that modern circumstances justified remuneration. The court found that it had inherent jurisdiction to authorise remuneration of trustees even where no such power exists in the trust instrument. The court also noted that Section 101 of the Trusts Act empowered it to authorise remuneration, and that Section 94 allowed the court to confer powers on trustees where necessary for the management of the trust.

The court concluded that the inherent jurisdiction and statutory powers allowed it to order remuneration if it was expedient for the proper administration of the trust. The court found that the administration of the Fund required a high degree of expertise, which could only be acquired at a price. The court approved the proposed amendment to the Trust Deed, which specified the levels of remuneration and provided for indexation and review. The court made an order inserting the new sub-clause into the Deed of Trust.

The final order of the court was to insert a new sub-clause 8.8 into the Deed of Trust, allowing the remuneration of the trustee as specified, subject to certain conditions including indexation and shareholder approval for any increases beyond indexation.