| They do things differently in Britain; legal fees for Trustees | |
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| Tweet Topic Started: Mar 10 2010, 01:19 PM (288 Views) | |
| Quasimodo | Mar 10 2010, 01:19 PM Post #1 |
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Remembering that Duke is a tax-exempt charitable trust...and that the trustees have, by conservative estimate, already spent about $50 million of Duke's money to avoid having to testify under oath...consider the way the laws work in Britain : http://www.bateswells.co.uk/Files/Publications/guide_to_trustees.pdf When can a trustee pay for legal expenses out of trust funds? The general rule is that a trustee, whether a trustee of a charitable or non-charitable trust, should be indemnified in respect of all his costs and expenses properly incurred in the execution of the trust. This includes legal costs incurred in connection with the proper bringing or defending of legal proceedings. When will a trustee not be entitled to an indemnity out of trust funds? In the case of Re Beddoe the Court stated that “a trustee who, without the sanction of the Court, commences an action or defends an action unsuccessfully, does so at his own risk as regards the costs, even if he acts on Counsel’s opinion…” This means that any trustee involved in legal proceedings should consider whether they can avoid the risk of incurring personal liability for legal costs by seeking the Court’s prior approval to the proposed course of action in question. If there is any doubt in the trustee’s mind he should apply to the Court for directions, or what is known as a Re Beddoe order. When should a trustee consider applying for a Re Beddoe order? Whenever a trustee is involved in actual or potential litigation they should consider applying to the Court for a Re Beddoe order. In many cases a Re Beddoe order may not be necessary but the more risky and expensive the litigation is likely to be, the greater the need to consider applying for the protection such an order provides. What does an application for a Re Beddoe order involve? Broadly, an application is made to the Court to ask whether the issue in question is one which should be fought out or abandoned. If the Court gives permission to bring or defend the proceedings (or proposed proceedings) then the trustee will be entitled to an indemnity for legal costs out of trust funds whether the case is won or lost, assuming always that the trust funds are sufficient. (snip) Summary To obtain an order authorising payment of legal costs out of trust funds trustees of non-charitable trusts can and should usually consider applying directly to the Court. Trustees of charitable trusts must first seek the approval of the Charity Commission. . . In either case the trustee will usually have to obtain a written legal opinion setting out fully the strengths and weaknesses of the case, and will need to consider the position of the beneficiaries and their views, the proposed course(s) of action under consideration, as well as alternative dispute resolution options. |
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| Quasimodo | Mar 11 2010, 12:43 PM Post #2 |
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And in New York: http://www.nypost.com/seven/01082009/business/a_demand_to_bounce_board_149193.htm A DEMAND TO BOUNCE BOARD By JAMES COVERT BERNIE MADOFF Burned endowment. Last updated: 6:43 am January 8, 2009 Posted: 3:04 am January 8, 2009 An activist Wall Street investor is calling for the ouster of the board of Yeshiva University, following the school's endowment's devastation by the alleged Bernard Madoff Ponzi scheme. Andrew Sole of Esopus Creek Advisors - the hedge fund that led a shareholder revolt last year against off-price retailer Syms when the chain's management voluntarily delisted its shares - demanded in a letter this week the immediate resignation of Yeshiva's entire board of trustees. (snip) "Yeshiva has the opportunity to begin the healing process today by installing new fiduciaries that are untainted by scandal and embarrassment," Sole, a member of the Class of 1999 at Yeshiva University's Cardozo School of Law, wrote to Joel in a Monday letter obtained by The Post. (snip) Sole called the university's response "scripted" and "beyond offensive," and accused Yeshiva of making an "ostrich defense" by ignoring the crisis. [Nobody is suggesting that the Yeshiva board acted inappropriately, just that they lost money through their negligent investing. But suppose the Yeshiva board had known that three of its students were being falsely prosecuted for a rape that never happened; were being vilified by the press; were not going to receive a fair due process; were the victims of racial animus; were attacked by some of the Yeshiva faculty; and that the university itself was being portrayed as a hotbed of racism and elitism? And that not only did the board not respond in any manner, nor come to the public assistance of its wrongly-accused students; but that at least some members of the board were even alleged to have attempted to help railroad the defendants, for PR purposes? And that the board still refused even to discuss the matter publicly, beyond a few bland pallatives? Wouldn't such a response be scripted" and "beyond offensive," wouldn't the BOT be making an "ostrich defense" by ignoring the crisis?] |
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7:13 PM Jul 10