Station Road, Sidcup

How can we help?

Please fill in this form and we'll get back to you as soon as possible.

Please enter your name
Please enter your email address
Please enter your telephone number
Please enter a question
Please let us know how you heard about us
Please enter the verification code

We’ll only use this information to handle your enquiry and we won’t share it with any third parties. For more details see our Privacy Policy

Pension Trustees Owe No Duty of Care to Employer

Many directors of companies are also trustees of the company pension scheme. Sometimes, their duties as a director and as a scheme trustee can be difficult to reconcile. In a recent case, a company alleged that two directors who were trustees of the firm's pension scheme had breached their duties as trustees and their fiduciary duties to the company.

The details of the dispute are not significant but the implications of the decision are. The argument was that the trustees of the scheme had a duty to take the employer's interests into account when exercising their functions as pension scheme trustees.

The High Court decisively rejected that argument, concluding that a trustee cannot serve two masters and does not owe a fiduciary duty to the employer sponsoring the scheme. Those interests, if considered, should not override the duty towards the scheme's beneficiaries.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.