A trustee's right of reimbursement and exoneration from trust assets arises as a necessary incident of the office of trustee and exists independently of any provision in the trust deed; the better view is that it cannot be excluded by the trust instrument. Where a deed of company arrangement is procured through false or misleading information to the administrator and creditors, including misinformation about a trustee's right of recourse to trust assets, the deed will be terminated under s 445D. Where it is not possible for the company to continue in existence, s 435A effectively places the onus on those supporting the deed to show positively that it results in a better return than immediate winding up. Those who provide false or misleading information bear a heavy onus to establish that the outcome of the creditors' meeting would indubitably have been the same had correct information been given.
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