Control of Assets in Equity

Author:

Nair Aruna

Abstract

This chapter examines the case law governing the situations where the holder of an equitable right in some asset can claim the traceable proceeds of that asset. Analysing the trust structure as the paradigm case of a relationship that generates claims to traceable proceeds, it argues that tracing does not depend on the existence of equitable powers to deal with the beneficial interest of the beneficiary but on the trustee's legal power to deal with the trust asset and his duties not to exercise those powers except for the claimant's benefit. This structure—the claimant has the benefit of an equitable interest in respect of some asset, and another person has a legal power to deal with that asset, which he is not at liberty to exercise in some circumstances—is shown to justify tracing in a number of contexts where equitable powers are either non-existent or irrelevant.

Publisher

Oxford University Press

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