Invalidity Of Protector Appointments

The Royal Court of Jersey has recently provided important guidance as to when the Court may hold the exercise of a fiduciary power to be invalid and in so doing has delivered the first judgment in Jersey setting aside an appointment of protectors on grounds of irrationality of appointment rather than conduct in office.

In the Representation of Jasmine Trustees Limited & Another [2015] JRC196 (in which Appleby acted for the successful applicant beneficiary) the Court took the exceptional step of setting aside the purported appointments of both Protectors and Trustees.

In its judgment, the Court confirmed that any person who appoints a new trustee or protector is exercising a fiduciary power. Accordingly, all such appointments must be made in good faith and in the interests of the beneficiaries as a whole. In addition, the power must be exercised reasonably, with the appointor having taken into account only relevant matters. The appointor may not exercise the