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Some might have heard of the term ultra vires, which is a Latin phrase loosely translated to ‘without authority’ or ‘beyond powers'.
The responsibilities and obligations of a Trustee are fiduciary in nature, much in the same way as those of a company director. Trustees ought to conduct themselves in a manner that serves the best interests of the trust and the beneficiaries. Where the conduct of a trustee negates this notion therefore, he/she may be removed from such position.
The recent case of Smith v ABSA Bank Limited yet again demonstrates the extreme caution that must be taken when dealing with a Trust.
Business dealings with Trusts are most likely to occur when immovable property is sold or purchased by the Trust.
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