Facts
The beneficiaries of four trusts (the "H Family
Trusts") sought the removal of one of their
cotrustees, Verite Trust Co Ltd
("Verite"), on the grounds of conflict
of interest, arising from Verite's trusteeship of eight other
trusts (the "J Family Trusts"). H and J
(the primary beneficiaries of their respective trusts) were
brothers, and their family trusts between them held 89% of the
shares in the family company, which operated a successful business.
The H Family Trusts owned a minority shareholding. J was the
chairman and chief executive of the company.
In 2006 a dispute arose between H and J concerning the affairs
of the company, which reached the point where H considered bringing
a minority shareholders' petition in his own name before the
English High Court. Accordingly, H's English solicitors wrote
to Verite to explain that litigation appeared to be a very real
prospect and that the interests of the primary beneficiaries under
the family trusts were
