Trust Law versus Corporate Law, Controlling Duties
When a trust owns corporate shares, do corporate fiduciary obligations or trustee obligations prevail? The answer is that generally a trustee’s obligations take priority.
Upon incorporation of trust assets, the corporation becomes the alter ego of the trustees and the trustee’s acts are determined in the light of the trust. Weldon Revocable Trust v. Weldon, 231 S.W.3d 158, 171 (Mo. Ct. App. 2007). To that end, when voting shares or in exercising powers of control over similar interests, the trustee shall act in the best interests of the trust beneficiaries.
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