Indemnities and modern corporate structures

Abstract

Abstract This article considers the issue of trustee indemnity clauses and their interaction with the corporate structures which underlie many modern trusts. It considers the problems which can arise in relation to such clauses and the recent decision of First National Trustco (UK) Ltd v McQuitty [2020] EWCA Civ 107, in which the Court of Appeal gave guidance as to the construction of such clauses. Finally, it will conclude by addressing the wider impact of the decision on the ability of trustees to compel beneficiaries to make payment in respect of liabilities of underlying companies in order to ensure that taxes and other liabilities are paid.