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The recent decision of the Hong Kong Court of Final Appeal (Final Court) in Zhang v DBS Bank (Hong Kong) (Zhang) dismisses the idea of a 'residual' or 'high-level supervisory' obligation upon trustees and endorses the effectiveness of a well-drawn anti-Bartlett clause that seeks to exclude any obligation upon the trustee to intervene in the management of an underlying company other than in the case of actual knowledge of dishonesty. This article reflects on this decision, and in particular, whether a 'residual' or 'high-level supervisory' obligation should exist and what the decision in Zhang means for the trust industry and anti-Bartlett clauses more generally.
Tony Pursall Consultant London
