Trustees must not just act honestly. They must be prudent and exercise the degree of care which they would in conducting their own affairs but at the same time mindful that they are dealing with another's property.' Discuss this statement in relation to the duty of care expected of a trustee.
Trustees must not just act honestly. They must be prudent and exercise the degree of care which they would in conducting their own affairs but at the same time mindful that they are dealing with another's property.' Discuss this statement in relation to the duty of care expected of a trustee.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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'Trustees must not just act honestly. They must be prudent and exercise the degree of care which they would in conducting their own affairs but at the same time mindful that they are dealing with another's property.'
Discuss this statement in relation to the duty of care expected of a trustee.
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A trustee seems held to a high level of duty of care. A trustee should administer the trust's business in an honest and cautious manner. They should also be aware that they will be dealing with someone else's property and should take precautions to safeguard it from loss or harm.
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