The Legal Nature of Unit Trust

The Legal Nature of Unit Trust

The Legal Nature of Unit Trust

The Legal Nature of Unit Trust

Synopsis

This is the first book to examine in depth the doctrinal character of the unit trust. The author begins by tracing the history of the unit trust as a sub-set of the trust and the company. He goes on to examine a whole range of related topics, including the contractual ingredient of the unit trust and its implications on doctrines of perpetuities, important case law such as the case of Saunder v Vautier, frustration, and remedies. This is followed by an analysis of the unit trust's relationships, obligations, and rights aspects -- including the associative, agency and fiduciary character of the relationships; the 'split of trusteeship' between the trustee and the manager (in the form of directory, veto, delegation, and advisory powers); and the nature of the unit trust. The relevant provisions of the Financial Services Act 1986 and its subsidiary legislation are also analysed. Clearly this book will be invaluable to all those who require a better understanding of the unit trust.

Excerpt

This book travelled many miles. It had its gestation in Hong Kong in my occasional encounters of unit trust problems after the black Monday of 1987. When my family moved to Sydney in 1992, my proposal to write a thesis on unit trusts was received with enthusiasm by Professor Michael Chesterman. After the completion of this thesis in 1995, my publication enquiry with this publisher was also responded to with no less enthusiasm.

Practical issues on unit trusts cannot be solved without answering a basic question of what a unit trust is. This work is an attempt to give a doctrinal answer to it. It does not seek to consider taxation and regulatory issues on unit trusts, unless they implicate on this question, and in respect of which major practitioners' texts may be consulted. in this endeavour, an effort has been made to exhaust unit trust cases in common law jurisdictions having unit trusts modelled on those of the United Kingdom.

I am grateful to all organisations and individuals providing me with scheme particulars, prospectuses, deeds and documentary materials, including Advance Asset Management Ltd, amp Investment Management Ltd, anz Funds Management Ltd, bt Asset Management Ltd, Mr Richard Chamberlin of Freshfields, London, Commonwealth Funds Management Ltd, Cornwall Stodart, Solicitors, Melbourne, Jardine Fleming Australia Management Ltd, Friends Provident Life Assurance Co Ltd, Howard Funds Management Ltd, National Australia Bank Ltd (Investment & Trust Services), Mr N W Reid of Linklaters & Paines, London, National Australia Financial Management Ltd, Rothchild Australia Asset Management Ltd, Schroders Australia Management Ltd, Schroders Australia Property Management Ltd, Mr L E Taylor, Chief Solicitor and General Counsel of Commonwealth Bank Group, and Wardley Investment Services (Australia) Ltd. I have also relied on documentary materials obtained through enquiry desks of many financial institutions. I am also grateful to Professor Paul Redmond for a copy of the rare book Formoy's Historical Foundations of Modern Company Law; to the United States Securities and Exchange Commission (Division of Investment Management) for its report 'Protecting Investors: a Half Century of Investment Company Regulation'; to Investment Management Regulatory Organisation Ltd for a copy of the 'Report on Financial Services and Trust Law', prepared by Professor D J Hayton and to the University of London Library for a copy of C H Walker's thesis on 'Unit Trusts'

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