Question 1

What is the 'Londonderry principle'?

Accepted Answer

The 'Londonderry principle' refers to a concept in the context of employment and labor relations, particularly in the United Kingdom. It is named after the Marquess of Londonderry, who was a coal owner and employer in the 19th century. The principle is based on the idea that an employer has the right to manage their business without interference and to hire or fire employees at their discretion.

This principle was famously articulated during the coal strikes in the UK, where Londonderry insisted on the right to manage his coal mines without the interference of unions or the government. He believed that the success of his business depended on his ability to make decisions about employment and management practices without being constrained by external pressures.

The Londonderry principle has been a subject of debate in labor relations, with employers often advocating for the freedom to manage their businesses, while labor unions and workers' rights groups argue for protections against unfair dismissal and for the right to collective bargaining.

It's important to note that the application of the Londonderry principle has evolved over time, especially with the introduction of various labor laws and regulations that provide a framework for employment rights and responsibilities. Modern labor relations in the UK and many other countries now balance the rights of employers to manage their businesses with the rights of employees to fair treatment and representation.

Question 2

A beneficiary can be appointed as an agent of the trust.

Accepted Answer

A) True 
 B)False  False

Question 3

Over the last century, the courts have narrowed the circumstances when beneficiaries are entitled to see information about the trust.

Accepted Answer

A) True 
 B)False  True

Question 4

Trustees may appoint agents, nominees and custodians to whom they may delegate their functions.

Accepted Answer

A) True 
 B)False

Question 5

Trustees are jointly or severally liable for the actions of other trustees.

Accepted Answer

The answer of Trustees are jointly or severally liable for...

Question 6

If trustees do not delegate an agent prudently they are liable for his errors.

Accepted Answer

A) True 
 B)False

Question 7

What does a breach of non-fiduciary duty generally mean for the trustee?

Accepted Answer

The answer of What does a breach of non-fiduciary duty...

Question 8

A passive trustee will be responsible for decisions which cause loss to the trust fund if he allows an active co-trustee to make decisions on his own.

Accepted Answer

A) True 
 B)False

Question 9

If an agent, nominee or custodian is appointed, the trustees' task does not end upon that appointment.

Accepted Answer

A) True 
 B)False

Question 10

Which of these powers does a trustee enjoy?

Accepted Answer

A) a power to invest the trust property. 
B) a power to maintain beneficiaries. 
C) a power to advance capital to the beneficiaries before they become entitled to it. 
D) a power to advance the income of the beneficiaries.

Question 11

Trustees enjoy a wide ability to delegate their powers. This ability is set out in Part IV of the Trustee Act 2000.

Accepted Answer

A) True 
 B)False

Question 12

What does section 27 of the Trustee Act 1925 provide?

Accepted Answer

The answer of What does section 27 of the Trustee...

Question 13

Trustees have a duty to pay the trust fund to the beneficiaries.

Accepted Answer

A) True 
 B)False

Question 14

In Hallows v Lloyd (1888) LR 39 Ch D 686, which trustees' duties were outlined by Kekewich J?

Accepted Answer

The answer of In Hallows v Lloyd (1888) LR 39...

Question 15

Under section 5 of the Trustee Act 2000, before investing and when reviewing the investments, the trustees must obtain and consider 'proper advice' as to whether the investment meets the standard investment criteria.

Accepted Answer

A) True 
 B)False

Question 16

Section 3 of the Trustee Act 2000 narrowed a trustee's investment powers considerably.

Accepted Answer

A) True 
 B)False

Exam 9: Trustees Non-Fiduciary Duties and Powers

What is the 'Londonderry principle'?

A beneficiary can be appointed as an agent of the trust.

Over the last century, the courts have narrowed the circumstances when beneficiaries are entitled to see information about the trust.

Trustees may appoint agents, nominees and custodians to whom they may delegate their functions.

Trustees are jointly or severally liable for the actions of other trustees.

If trustees do not delegate an agent prudently they are liable for his errors.

What does a breach of non-fiduciary duty generally mean for the trustee?

A passive trustee will be responsible for decisions which cause loss to the trust fund if he allows an active co-trustee to make decisions on his own.

If an agent, nominee or custodian is appointed, the trustees' task does not end upon that appointment.

Which of these powers does a trustee enjoy?

Trustees enjoy a wide ability to delegate their powers. This ability is set out in Part IV of the Trustee Act 2000.

What does section 27 of the Trustee Act 1925 provide?

Trustees have a duty to pay the trust fund to the beneficiaries.

In Hallows v Lloyd (1888) LR 39 Ch D 686, which trustees' duties were outlined by Kekewich J?

Under section 5 of the Trustee Act 2000, before investing and when reviewing the investments, the trustees must obtain and consider 'proper advice' as to whether the investment meets the standard investment criteria.

Section 3 of the Trustee Act 2000 narrowed a trustee's investment powers considerably.