Part 1Trusts
Chapter 3Powers and duties of trustees
Breach of duty etc.
I135Order relieving trustee of consequences of entering into a transaction in breach of fiduciary duty
1
This section applies where a trustee has entered into, or proposes to enter into, a transaction in breach of a fiduciary duty.
2
The court may, on the application of the trustee, if it thinks fit and if the conditions mentioned in subsection (3) are satisfied make such order, relieving the trustee of the consequences of breaching that duty, as seems to the court to be just.
3
The conditions are—
a
that the transaction has benefited, or is likely to benefit, both the trust property and (collectively) the beneficiaries, and
b
that the terms of the transaction are at least as favourable to the trust property as those likely to have been, or to be, obtained in a comparable commercial transaction at arms-length.
4
This section applies—
a
irrespective of when the trust was created, but
b
only as respects a transaction entered into, or to be entered into, after the section comes into force.