Section 81 of the Trustee Act 1925 (NSW) is broad enough to empower the Court to confer on a trustee a power to amend a trust deed that replaces unitholdings with shareholdings, provided the amendment arises in the management or administration of trust property and is not made for the sole purpose of altering beneficial interests. The Gambotto principles do not apply to such a restructure where: (a) the Court reviews fairness under s 81; (b) all interest-holders are treated equally; or (c) the substantial purpose is to avoid detriment to the trust. Whether Gambotto principles apply to unit trusts generally remains an open question.
The full text is available to signed-in members, including the 42 later cases that cite this judgment.
4 of the 42 citing cases carry a classified treatment. How each court treated it is available to signed-in members.