Contents

Chapter 11
Reviewing the actions of trustees

Introduction

11.1This chapter considers the procedure under section 68 of the Trustee Act 1956 for reviewing the acts and decisions of trustees. The Commission recommends retaining and reforming that procedure as well as confirming that judges can review decisions made by trustees under both the new Trusts Act and under the trust deed. However, the grounds of review should be limited as to whether trustees have made a decision that was not reasonably open to them. It should not be the substitution of the judge’s view of what was an appropriate decision for that of the trustee.

11.2 These issues were discussed more extensively in the Preferred Approach Paper and the Fifth Issues Paper.256
256Law Commission Review of the Law of Trusts – Preferred Approach (NZLC IP31, 2012) at ch 10; Law Commission Court Jurisdiction, Trading Trusts and Other Issues: Review of the Law of Trusts – Fifth Issues Paper (NZLC IP28, 2011) at ch 1.