CANNOT (WITHOUT MORE) LOOK TO A TRUST’S ASSETS FOR THE SATISFACTION OF A TRUSTEE’S PERSONAL DEBTS
Osborne v Cockin NO and Others (549/2017)  ZASCA 58 (17 May 2018)
When you lose several million rands in a business arrangement with Mr X, and X’s estate is later sequestrated whilst it appears that X’s family trusts are faring much better, you may well wonder whether recourse could be had from the trusts. If it appears that X used the trust as an alter ego for his personal dealings then, in very specific circumstances, one can ‘pierce the veil’ of the trust. This judgment tells such a story and although the application was unsuccessful for technical reasons, it is important to take note to differentiate between transacting with an individual in his personal capacity and in his capacity as trustee of a trust.
STBB’s STSMA REFERENCE GUIDE
In this, the fifty-third set of notes for your STSMA Reference Guide, Prescribed Conduct Rule 1 is discussed.
Prescribed Conduct Rule 1
(N.B. Print in landscape)