The Guernsey Court of Appeal in Molard International (PTC)
Limited and Pullborough Int. Corp v Rusnano Capital AG (in
liquidation),has recently upheld the Deputy Bailiff's
interpretation of Section 53(3) of the Trusts (Guernsey) Law 2007
(the Law) that a sole beneficiary can use that
section of the Law to terminate a discretionary trust even if the
trust instrument contains a power to add further beneficiaries.
The Royal Court decision
Rusnano Capital AG (Rusnano), an entity in
liquidation, was the sole named member of a class of discretionary
beneficiaries of the RN Pharma Trust (the Trust).
Rusnano sought an order, which was opposed by Molard International
(PTC) Limited (the Trustee) and Pullborough
International Corp (the Enforcer), that the Trust
be terminated and the trust fund, which comprised mainly of shares
in Pro Bono Bio PLC, be distributed to it. The trust instrument
contained the power to add further beneficiaries which the trustees
had not yet
