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Fiduciary Duty of Trustee

The Trustee has a fiduciary duty to the Beneficiaries which required that the Trustee act in good faith and in the best interests of the beneficiaries.

The Trustee's fiduciary responsibility to the beneficiaries is much higher than, for instance, that of a director to the shareholders of the Company. The Trustee legally holds the assets of the Trust and is liable for any breach of trust. Therefore, the possibility of recourse to the Trustee has to be a material consideration when establishing a Trust. The Trustee legally controls the assets in the Trust but is not allowed to secretly profit in any way from its position and may only recover fees and disbursements as previously agreed under the terms of the Trust Deed.