Chapter 7 - Creditors and trading trusts



Do you consider that there are problems for creditors dealing with trading trusts?


Do you support any of the options for assisting creditors dealing with trading trusts, either alone or in combination?


Do you consider that it would be beneficial to restate in legislation the essential principles of any of the following areas of the common law (as they apply generally, not only to trading trusts):

a.that a trustee assumes personal liability unless there is an express contract to the contrary;

b. a trustee’s right to indemnity out of trust assets;

c. how and subject to what, if any, conditions can a trustee’s rights to indemnity be exercised;

d. the circumstances in which creditors can be subrogated to a trustee’s right of indemnity; and

e. exclusion of the right of indemnity.