Corporate trustees: no fiduciary duty owed by a successor trustee to its predecessor

Matthew McCarthy, Matthew Whittle and Harrison Main of Allens note that it is common for insolvency practitioners to be appointed to insolvent former trustees and warn that in cases where there is a risk that the successor trustee will dissipate trust assets, insolvency practitioners should consider promptly seeking interlocutory injunctive relief to preserve the status quo, even before the court hears an application to appoint a receiver.

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