Acts and Regulations

2015, c.21 - Trustees Act

Section 31
Disposition versions

Full text
Conflict of interest
31(1)Unless the law or the trust instrument permits or the beneficiaries consent, a trustee shall not knowingly permit a situation to arise in which
(a) the trustee’s personal interest conflicts with the trustee’s exercise of the powers or performance of the duties of the office of trustee, or
(b) the trustee may derive any personal benefit or a benefit for any other person.
31(2)On application by a trustee who shows that acting or declining to act is in the best interests of the beneficiaries or purposes of the trust, whether or not the beneficiaries consent, the court may make an order, on the terms and conditions the court considers appropriate,
(a) allowing the trustee to act or decline to act, whether or not the trustee may be in a situation that contravenes subsection (1), or
(b) excusing a trustee from liability for contravening subsection (1).
31(3)An order under paragraph (2)(b) may be made any time after the contravention of subsection (1).
31(4)A trustee shall serve notice of an application under this section as follows:
(a) to all qualified beneficiaries of the trust, unless otherwise ordered by the court; and
(b) if the trust is a charitable trust, to any person the court directs.
31(5)If paragraph (4)(b) applies, the trustee shall also serve notice of an application under this section on the Attorney General at least 30 days before the date set for the hearing of the application, and the Attorney General is entitled to appear and be heard on the application.
31(6)On application by the trustee, a qualified beneficiary or the Attorney General, the court may vary an order under this section if
(a) additional information becomes available after the order is made, or
(b) the circumstances under which the order was made change.
31(7)Nothing in this section limits the jurisdiction of the court under sections 60, 78 and 79.
Conflict of interest
31(1)Unless the law or the trust instrument permits or the beneficiaries consent, a trustee shall not knowingly permit a situation to arise in which
(a) the trustee’s personal interest conflicts with the trustee’s exercise of the powers or performance of the duties of the office of trustee, or
(b) the trustee may derive any personal benefit or a benefit for any other person.
31(2)On application by a trustee who shows that acting or declining to act is in the best interests of the beneficiaries or purposes of the trust, whether or not the beneficiaries consent, the court may make an order, on the terms and conditions the court considers appropriate,
(a) allowing the trustee to act or decline to act, whether or not the trustee may be in a situation that contravenes subsection (1), or
(b) excusing a trustee from liability for contravening subsection (1).
31(3)An order under paragraph (2)(b) may be made any time after the contravention of subsection (1).
31(4)A trustee shall serve notice of an application under this section as follows:
(a) to all qualified beneficiaries of the trust, unless otherwise ordered by the court; and
(b) if the trust is a charitable trust, to any person the court directs.
31(5)If paragraph (4)(b) applies, the trustee shall also serve notice of an application under this section on the Attorney General at least 30 days before the date set for the hearing of the application, and the Attorney General is entitled to appear and be heard on the application.
31(6)On application by the trustee, a qualified beneficiary or the Attorney General, the court may vary an order under this section if
(a) additional information becomes available after the order is made, or
(b) the circumstances under which the order was made change.
31(7)Nothing in this section limits the jurisdiction of the court under sections 60, 78 and 79.