Chapter 16
Trustee’s indemnity, corporate trustees and insolvency


16.1 This chapter addresses various issues relating to corporate trustees, creditors, trustees’ indemnity, and insolvency, which were previously discussed in the Fifth Issues Paper and the Preferred Approach Paper.306 It includes discussion of previous proposals on:

16.2This chapter also discusses recommendations in the following areas:

16.3In some of these areas there have been changes from what was proposed in the Preferred Approach Paper. We have decided that some of those proposals are more appropriately dealt with later in the Law Commission’s corporate trustee review. This chapter discusses submitters’ comments and reasons for changes in position from the Preferred Approach Paper.

306Law Commission Court Jurisdiction, Trading Trusts and Other Issues: Review of the Law of Trusts – Fifth Issues Paper (NZLC IP28, 2011) at pt 3; Law Commission Review of the Law of Trusts – Preferred Approach (NZLC IP31, 2010) at ch 8.