Saunders v Vautier In The Channel Islands - Guidance From Guernsey

Can the beneficiaries of a discretionary trust require the trustees to terminate the trust and distribute the trust property, in circumstances where a power to add further beneficiaries exists? In Rusnano Capital AG (in liquidation) v Molard International (PTC) Limited and Pullborough International Corp [2019] GRC 011 (the "Judgment") the Guernsey Royal Court has held that in Guernsey they can. In doing so, the court also provided a welcome clarification of the relationship between section 53 of the Trusts (Guernsey) Law, 2007 (the "Trusts Law") and the so-called 'rule' in Saunders v Vautier.

Facts

The Applicant was an entity within a wider group structure which invested in the nanotechnology industry. One such investment was shares in an English healthcare technology company (the "Shares"). A trust was established in 2014 (the "Trust"), with Molard International (PTC) Limited (the "Trustee") as trustee, and Pullborough International Corp (the "Appointor")