In the context of applications to court for directions, the following observation by Deemster Doyle in re Isis Investments Limited (judgment delivered 2 February 2011) is relevant:
In the context of trustees seeking directions of the court (and I appreciate that I am dealing with an application by a liquidator) see my judgment in IFG Administration (IOM) Limited (judgment delivered 23rd April 2009). As I stressed in that case, an application for directions by a trustee should not be used as a substitute for taking decisions which should be the trustee’s own responsibility. In particular, I would stress that professional trustees and liquidators must be ready, willing and able to make their own decisions in respect of the management and administration of the trust property or the company in liquidation. …I entirely appreciate that on occasions trustees and liquidators will need to come to the court for directions …1 [emphasis added]
It is however generally the case that “where the equities are not perfectly clear, [a trustee] should either apply to the court for directions or, in the few remaining cases in which is proper to do so, pay the fund into court”2. A trustee may apply to court in relation to proposed decisions in various cases3: (i) as to whether a proposed course of action is within its powers (ii) where that is clear, as to whether a particular exercise of those powers which is particularly momentous is proper and (iii) to surrender their discretion for certain limited reasons.
Read the full article here: Applications to court – re Isis Investments