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Last updateTue, 24 Feb 2015 5pm

Conyers Dill & Pearman

Conyers Dill & Pearman

The Cayman Court has provided clarity over what happens in the event of absent or defective protector consent. Robert Lindley explains

Any trustee should have cause for concern upon realising that in the exercise of its powers and duties the appropriate consents had not been obtained, or were defective, thus jeopardising the validity of the trust’s administration, particularly if the absent or defective consent has remained undetected for a significant period of time. As a cautionary tale for trustees and practitioners such a set of circumstances were considered by the Grand Court of the Cayman Islands (the ‘Cayman Court’) in the case of the Y Trust No 1 (2016) which illustrates various ways in which the problem of absent or defective protector consent may be overcome, and the factors relevant to obtaining the Cayman Court’s approval to the appointment of private trust companies in place of individual trustees.