1. Peter has been appointed trustee of Nina's testamentary express trust. The trust document states that the trust applies to "...most of my estate, including my shares and two-thirds of my antique collection." It goes on to state that "half of the two-thirds of the antique collection is to be held for the grandchildren that loved me most". Can Peter fulfil the terms of Nina's trust? Give reasons for your answer.
2. Elaine is the trustee of a trading trust and enters into a contract with a service on behalf of the trust. The business of the trading trust is not financially sound and when the service is complete there are insufficient trust funds to pay the debt. Giving reasons for your answer, explain who will be liable to pay the outstanding debt.
3. Lewis, the chairman of the committee of the Flemington Football Club Inc has also entered into a two year contract with GreatGrounds Gardeners, to maintain the football oval and grounds. All went well for the first ten months, but despite providing their services, GreatGrounds Gardeners have now not received payment for three months. Who is liable for the debt owed to GreatGrounds Gardeners? Give reasons for your answer. Would your answer be different if Flemington Football Club Inc was not an incorporated association? If so, how and why?
4. List the ways in which property of the company is protected during the administration.
5. Elizabeth owns 20,000 shares in Tudor Ltd. Elizabeth has received from the directors of the company a renounceable one-for-four rights issue at the discounted price of 5% below market price. Explain what this means and the choices available to her.