Equity and trust problem questionWatch this thread
Two months ago, Oil Ltd also wrote and sent a signed letter to their employee Andrew, who has worked in the company for 10 years, stating: ‘As a reward for your hard work we hold 25 tonnes of our crude oil in Tank B on the onshore storage in Aberdeen for your benefit so any income, such as the rise of oil prices, will be yours and once they will be sold we will account the money for you’. Oil Ltd argues that a valid trust was not created for Bassam and Andrew as the crude oil was not segregated. Advise Bassam and Andrew as to whether a valid trust was created for them. Shaimaa, a successful business person, owns 1000 ordinary shares in Oil Ltd company. She also has £1 million in her bank account. To celebrate her success Shaimaa had decided to go travelling round the world. Before travelling Shaimaa visited her solicitor to set up an inter vivos trust and Shaimaa’s two daughters, Chloe and Georgia, agreed to act as trustees. In her (valid) will she has left everything to Greenpeace. The terms of the trust are as follows: 1) Shaimaa’s £1 million is to be held on trust for her relatives around the world and should be divided between them equally. 2) All Shaimaa’s ordinary shares in Oil Ltd to be held on trust for Chloe’s son, Mohammad. Shaimaa was then tragically killed in a road accident on the way to the airport. A couple of weeks after her death, amongst Shaimaa’s papers Chloe found a share transfer which Shaimaa has signed, and which named Mohammad as the transferee – but she forgot to send it to the trustees or the company Oil Ltd.
Greenpeace argue that the disposition of £1 million does not create a valid trust, they also argue that the disposition of ordinary shares is not constituted.
Advise Chloe and Georgia as to whether the first disposition creates a valid trust and whether a trust is constituted for the second disposition.