A Trust Should Not Be A Member

A recent case¹ in the Court of Appeal of England and Wales reiterates the importance of having trustees entered as the member of a company, rather than the trust itself being entered as the member.

The Case  

This case involved two corporate trustees (the “Trustees”) in their capacities as trustees of the Erutuf Trust making a derivative² claim against Mr Verhoef (the “Defendant”) on behalf of the subsidiary companies of Tellisford Limited (“Tellisford”) in respect of alleged misappropriations of assets of the subsidiaries (the “Derivative Proceedings”).

The Trustees applied for the Court's permission to continue the proceedings (the “Permission Application”), as is required under the English High Court rules in the case of derivative proceedings.