A trust will not be a sham merely because it was created with an improper purpose such as deceiving a court or evading taxation; the sham doctrine requires an intention that the transaction not bear its apparent legal consequences, which is distinct from an improper motive for entering into a genuine transaction. A validly constituted trust cannot subsequently become a sham through the trustee's breach of trust obligations — such conduct is a breach of trust, not an 'emerging sham'. A power of appointment under a trust deed is not 'property' that vests in a trustee in bankruptcy under s 58 of the Bankruptcy Act 1966 (Cth).
The full text is available to signed-in members, including the 81 later cases that cite this judgment.
7 of the 81 citing cases carry a classified treatment. How each court treated it is available to signed-in members.