| Summary: | The purpose of this mini-dissertation is to investigate the possibility of applying the turquand-rule as well as lifting the corporate veil in the law of trusts. Usually the turquand-rule is only applicable in the Company law. This theory, however was threatened after the decision in Man Truck & Bus (SA) Ltd v Victor en Andere 2001 2 SA 562 (NK) and those cases that followed it. In this case the court ruled that the turquand-rule can also be applied in the law of trust. II based its decision on the principles of reasonableness and fairness.
Critics have not been shy to give their opinion about the ruling, It is generally felt that the turquand-rule as well as the lifting the corporate veil cannot be applied in the South African law of trust because of two main issues, namely the fact that juristic personality does not vest in trusts and the fact that trustees must act together at all times.
The validity of this critique will be placed under the microscope and all aspects concerning this issue will be separately dealt with. One of these aspects is the abuse of the trust that is taking place in South Africa. Trusts are used to manipulate family members, evade creditors and to obtain other advantages, like tax benefits. This is a concern to both academics and the man on the street. Some kind of remedy is thus needed to solve this dilemma. In my opinion it can be validly found in applying the turquand-rule and the llfting of the corporate veil also in the law of trusts. === Thesis (LL.M. (Estate Law))--North-West University, Potchefstroom Campus, 2008.
|
|---|
