Anti-Bartlett clauses after IQEQ in the Hong Kong Court of Final Appeal

Abstract As a donor of assets over a continuing period via a trustee, the settlor and the trustee are free to negotiate how far an exoneration clause can extend to oust a trustee's duties and so limit the extent of the bounty conferred on beneficiaries by the settlor. In particular, where an aggressive speculative investment policy is required to be pursued via a controlled underlying company, so that beneficiaries may benefit from massive gains or suffer the burden of massive losses, the vulnerable trustee is entitled to protect itself from all liability for losses unless guilty of dishonesty or of failing to intervene in circumstances where it had actual knowledge of dishonesty in the management of the company.