Trustees are duty bound to monitor the activities of any company comprised in the trust fund and the actions of its directors.
However, where the trust fund specifically consists of, or includes a controlling interest in a family company, the imposition of the "prudent man of business" rule raises significant obstacles for both trustees and a settlor to overcome.
Professional trustees are unlikely to be the best people to run an active business, where an understanding of the market and an ability to react quickly are essential. Trustees also have to take into account liability issues where they may be held responsible for not maximising the asset value of the trust fund.
BVI VISTA (Virgin Islands Special Trusts Act) Trusts provide a solution to these drawbacks. To read more click here.