I have a trust governed by Trusts Jersey Law. The trust has one trustee and one protector. The sole beneficiary is an Italian bank (it is a trust set up to give a bank a security for the repayment of a debt).
The trust fund includes only the 100% of the shares of an Italian s.r.l. (a company similar to a UK ltd).
Under the trust deed the trustee may be revoked with the consent of the majority of settlor, protector and the beneficiary.
The settlor and protector revoked the trustee a couple of week ago without any specific reason (the debt is being repaid, thus the trustee does not have to sell the share in the company; the trustee is waiting and seeing what happens to the debt).
The remuneration of the trustee has not been ever paid out of the trust fund. The trust fund had and has no liquidity and the settlor did not put any into the trust fund notwithstanding a specific provision in the trust deed.
My questions are the following:
- Is the revocation of the trustee effective considering that it is well established in Jersey law that the power of revocation is a fiduciary one?
- Can the outgoing trustee refuse to vest the shares to the incoming trustee until his remuneration is paid?
- Should revocation is effective and the trustee can not refuse to vest the shares to the incoming trustee, what means the trustee has at his disposal to make himself paid?
Daniele Muritano
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