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\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 HELD AT RAROTONGA
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 (CIVIL DIVISION)
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\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7233774\charrsid4222883 dated 10 July 1995}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 
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\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7233774\charrsid4222883 of an application by }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7233774\charrsid4222883 ABC LIMITED}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883\charrsid4222883 
 a duly incorporated company
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7233774\charrsid4222883 pursuant to the International}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883\charrsid4222883  Companies Act 1981/82, having its
\par registered office at Rarotonga, acting in the capacity as
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4935280 T}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883\charrsid4222883 rustee of the }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4222883\charrsid4222883 XYZ Trust}{
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\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 Applicant
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\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16386905\charrsid4222883 H}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 earing: 29 July 1999
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 Counsel}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 : B.J. Gibson}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  for Applicant
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\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 Manarangi for F.T.C.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883  }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 Incorporated
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\par Date of Judgment: 11 August 1999
\par 
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\par The Applicant has applied under s.}{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959  }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 66 of the Trustee A
ct 1956 for directions in respect of the management and administration of the XYZ Irrevocable Trust established and settled under a Trust Deed dated 10 July 1995, and for declarations in respect of matters arising out of that Trust and of matters subseque
nt to its establishm}{\fs24\lang2057\langfe1033\langnp2057\insrsid11694541\charrsid4222883 ent.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  It is necessary first to set out the nature of the Trust and the sequence of events}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11694541\charrsid4222883 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 
\par 
\par The XYZ Irrevocable Trust (the Trust) was constituted by a Trust Deed dated 10 July 1995 made between Mr M and his wife Mrs M as }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  and}{\fs24\lang2057\langfe1033\langnp2057\insrsid4935280  the Applicant, A}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 B}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4935280 C}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  Limited, which, together with the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8722118\charrsid4222883 , were the original trustees. }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 The Trust was registered as an international trust under the}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8722118\charrsid4222883  International Trusts Act 1984.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  Initially the discretionary beneficiari}{
\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 es were the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors'}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883  children. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 Child A and Child B but the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 
 themselves were later added as discretionary beneficiaries.
\par 
\par The Trust-Deed provided that the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  were also to be the Protectors of the Trust}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8722118\charrsid4222883  as defined in s.}{\fs24\lang2057\langfe1033\langnp2057\insrsid730155  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8722118\charrsid4222883 2 of the Act. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 The }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  and their children are United States citizens.

\par 
\par By facsimile transmission dated 12 May 1998 the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  informed the Applicant that the United States Dist}{
\fs24\lang2057\langfe1033\langnp2057\insrsid730155 rict Court in the District of Ne}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 vada had}{\fs24\lang2057\langfe1033\langnp2057\insrsid8722118\charrsid4222883 ,}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  in a lawsuit filed by the Commission}{\fs24\lang2057\langfe1033\langnp2057\insrsid8722118\charrsid4222883  (the Commission),}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  issued a temporary restraining order ordering them (inter alia) to repatriate all their assets to the United States and to provide a full accounting of t}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16071882\charrsid4222883 hose assets to the Commission. }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 The restraining order was based on an allegation that the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  had engaged in certain acts in violation of United States laws dealing with telemarketing activities.
\par 
\par On 14 June 1998 the General Manager of the Applicant wrote to the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  informing them that, by reason of an }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 event of duress}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  as defined in the Trust Deed, they had automatically ceased }{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 to be co-trustees of the Trust.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  The event of duress was that they had been the subject of an action in the territory in which they were resident the aim, purpose or effect of which was the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 acquisition, expropriation or confiscation of any of the assets comprising the property of t}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3691408\charrsid4222883 his Trust or any part thereof}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid3691408\charrsid4222883 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  The Applicant declined to comply with the terms of the restr}{\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 a}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 ining order on the basis that to do so would have been in breach of cl}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 s.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11227520  }{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 34 and 42 of the Trust Deed. }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 Th
ose clauses precluded any Excluded Person (as that expression is defined in the Trust Deed and to which reference is made later) from taki}{\fs24\lang2057\langfe1033\langnp2057\insrsid2238680\charrsid4222883 ng any benefit under the Trust.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  The result of this was that, on 18 June 1998, the District Court made an order for the imprisonment of the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  for contempt of court.
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11227520 On 7 July 1998 Mr}{\fs24\lang2057\langfe1033\langnp2057\insrsid4935280  }{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 
M informed the Applicant of his imprisonment and said he had been requested by the Commission and the District Court to procure the cons}{\fs24\lang2057\langfe1033\langnp2057\insrsid11227520 ent of his children to the repa}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 tr}{\fs24\lang2057\langfe1033\langnp2057\insrsid11227520 i}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 ation of the Trust }{
\fs24\lang2057\langfe1033\langnp2057\insrsid11227520 F}{\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 und}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 
 to the United States, and that if he was able to do this the Court would or}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 der his and his wife}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 s release.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  The Applicant declined again to release any of the Trust Funds.
\par 
\par On 17 November 1998 Mr M informed the Applicant that the Commission and the District Court were examining other options in order to procure the r}{\fs24\lang2057\langfe1033\langnp2057\insrsid11227520 epatriation of the Trust Fund. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 For this purpose the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883  United States attorneys took advice from a Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883  solicitor, Mr}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15083492\charrsid4222883 . }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 Manarangi, and as a result of that adv
ice a new Cook Islands international company called Commission Incorporated (CI) was formed and registered under t}{\fs24\lang2057\langfe1033\langnp2057\insrsid11227520 he International Companies Act.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883  The di}{\fs24\lang2057\langfe1033\langnp2057\insrsid15083492\charrsid4222883 rectors of that company were Mr.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883  Manar}
{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 angi and his accountant, Mr X}{\fs24\lang2057\langfe1033\langnp2057\insrsid11227520 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 The sole shareholder was the Commission.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9718889\charrsid4222883 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
\par The }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
 then, on 18 December 1998 executed a document described as a Deed of Removal and Appointment of Trustee by which they purported to remove the Applicant as Trustee and to}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 
 appoint CI as the new Trustee.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883  Upon legal advice the Applicant rejected this Deed as invalid.
\par 
\par On 22 December 1998 a further Deed was ex}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 ecuted by the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883  and CI. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 This was described as a Deed of Amendment}{\fs24\lang2057\langfe1033\langnp2057\insrsid15083492\charrsid4222883 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
 and its purpose was to amend the original Trust Deed by excluding the Commission from the definition of Excluded
 Persons in the Fourth Schedule to the Trust Deed, and by providing that the persons empowered to appoint successor trustees set out in the Fifth Schedule (namely the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 ) be deleted.
\par 
\par On the same day the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883  executed a Declaration of Resignation
 whereby they resigned as Protectors of the Trust pursuant to cl.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883  }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
43(a) of the Trust Deed and purported to appoint CI as substitute Protector.
\par 
\par In the circumstances as set out above the Applicant has applied for declarations:
\par 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4222883 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 1. }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 That the 
Deed of Removal and Appointment of Trustee of 18 December 1998 is not valid by reason of its being in breach of cl.}{\fs24\lang2057\langfe1033\langnp2057\insrsid11227520  }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
43(j) of the Trust Deed, and in particular as it purports to appoint CI as the new trustee for the benefit of an Excluded Person.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4222883 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 2. }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
That the Deed of Amendment of 22 December 1998 is not valid as the person who purported to execute the De}{\fs24\lang2057\langfe1033\langnp2057\insrsid9656650\charrsid4222883 ed as trustee was not a validly}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883  appointed trustee, and that in any event the Trust Deed contained no power of amendment such as that purported to be exercised in the Deed.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4222883 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 3. }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
That the appointment of CI in the Declaration of Resignation of 22 December 1998 is not valid as being the purported appointment of a substitute Protector for the benefit of an Excluded Person.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4222883 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 4. }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
In the event that the Court holds that the appointment of CI as Protector is not valid the Applicant seeks directions as to whether or not some other person}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 or entity should be appointed as Protector, and, if so, who such person or entity should be.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7474313 {\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
\par In order to arrive at a deci}{\fs24\lang2057\langfe1033\langnp2057\insrsid7492990\charrsid4222883 sion on these issues there are two}{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883  basic matters which require consideration:
\par 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 A. }{\fs24\lang2057\langfe1033\langnp2057\insrsid10953558 Whether, w}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 hen Mr. and Mrs. M signed the Deed of Removal and Appointment of Trustee, the Deed of Amendment and the Declaration of Resignation, they did so under duress so as to render t
he documents void or voidable.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 B. }{\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
Whether the effect of the execution of those three documents was to confer a benefit upon an Excluded Person so as to make the documents invalid and unenforceable.
\par }\pard \ql \li360\ri0\widctlpar\faauto\adjustright\rin0\lin360\itap0\pararsid7474313 {\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid7474313 {\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 I deal with these in turn.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7474313 {\fs24\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid546002 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 A. }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 Duress}{
\fs24\ul\lang2057\langfe1033\langnp2057\insrsid16072198\charrsid4222883 .}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7474313\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 It is common ground that the commencement by the Commission of an action in the U.S.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3886102\charrsid4222883  }{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 District Court in the District of Nevada against Mr. and Mrs.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3886102\charrsid4222883  }{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 M and several companies in which they were involved was an }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 event of duress}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883  as defined in th
e Trust Deed and resulted in their automa}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 tically ceasing to be trustee}{\fs24\lang2057\langfe1033\langnp2057\insrsid15075286 s}{
\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 . }{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 This left the Applicant as the sole trustee.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 On 12 May 1998 Mr. and Mrs.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3886102\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
M in attempted compliance with the order of the District Court, sent a facsimile transmission to the Applicant directing it to provide a full accounting of the assets held in the Trust and to repatriate the assets of th}{
\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 e Trust to the District Court. }{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 The Ap
plicant declined to comply with that direction and shortly after the Ms were held to be }{\fs24\lang2057\langfe1033\langnp2057\insrsid289101 in }{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
contempt of court and were imprisoned on 19 June 1998.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 On 7}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid3886102\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 July 1998 Mr. M rang Mr.}{\fs24\lang2057\langfe1033\langnp2057\insrsid1923554\charrsid4222883  }{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
T, the General Manager of the Applicant, and said he had been requested by the Commission and the District Court to procure the consent of the settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883  daughters to the repatriation of the Trust}{\fs24\lang2057\langfe1033\langnp2057\insrsid3888006\charrsid4222883  Fund. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 His understanding was that if he could secure that consent and repatriation he a}{\fs24\lang2057\langfe1033\langnp2057\insrsid15075286 nd his wife would be released. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 One of the daughters then wrote to the Applicant directing that one-half of the Trust assets be }{\fs24\lang2057\langfe1033\langnp2057\insrsid1329340\charrsid4222883 repatriated}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883  to the United States for her benefit, but the Applicant declined to comply with this direction.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 An appeal was lodged against the Ms}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883  imprisonment but was dismissed.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 On 17 November 1998 Mr.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16072198\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 M rang again saying he was still imprisoned an}{\fs24\lang2057\langfe1033\langnp2057\insrsid7938105\charrsid4222883 d}{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
 that the Commission and District Court were examining other options in order to obtain the funds.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 On 3 December 1998 one of the daughters, Child B}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7938105\charrsid4222883 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883  rang Mr.}{\fs24\lang2057\langfe1033\langnp2057\insrsid13988285\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 T and said she believed her father was }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 being forced}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883  by the Commission and the District Court to appoint a new trustee in order to have the funds repatriated.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 On 15 December 1998 Mr. M rang again to say he was still in prison and had been requested by th
e Commission}{\fs24\lang2057\langfe1033\langnp2057\insrsid6037885\charrsid4222883  to sign a document appointing a new }{\fs24\lang2057\langfe1033\langnp2057\insrsid1573400\charrsid4222883 Cook Islands International}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883  Company as trustee in place of the Applicant and that he believed he and h}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 is wife would now be released. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 There followed then the execution of the three documents previously referred to.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 Subsequently, and for the purpose of the present proceedings, Mr}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7763155\charrsid4222883 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883  and Mrs.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7763155\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 M each made affidavits deposing that the documents had been reviewed by their attorney prior to execution and had been executed }{\fs24\lang2057\langfe1033\langnp2057\insrsid15075286 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 on}{\fs24\lang2057\langfe1033\langnp2057\insrsid7763155\charrsid4222883  my own volition without duress}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7763155\charrsid4222883 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 This statement needs to be considered in the light of the remarks made by Mr.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7763155\charrsid4222883  }{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 M in his telephone calls to Mr.}{\fs24\lang2057\langfe1033\langnp2057\insrsid7763155\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 T and which may well be capable of the interpretation that he was acting at the direction of the Commission and the District Court and solely to procure his and his wife}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 s release from prison.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
I have not had the opportunity of seeing and hearing those witnesses and am left to resolve the matter as best I can.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4222883 The only authority on the subject I have been able to find and which may apply to the present cir
cumstances is a }{\fs24\lang2057\langfe1033\langnp2057\insrsid12727241 brief}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883  passage in V}{\fs24\lang2057\langfe1033\langnp2057\insrsid6758215\charrsid4222883 ol.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6758215\charrsid4222883 9 Halsbury}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6758215\charrsid4222883 s Laws of England, }{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 4}{\fs24\lang2057\langfe1033\langnp2057\insrsid6758215\charrsid4222883 th,}{
\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883  edition, para}{\fs24\lang2057\langfe1033\langnp2057\insrsid12727241 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid3695731\charrsid4222883  710:}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3695731 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4222883 {\fs24\lang2057\langfe1033\langnp2057\insrsid4222883\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid14371591\charrsid4222883 The question}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883  whether imprisonment }{\fs24\lang2057\langfe1033\langnp2057\insrsid14371591\charrsid4222883 or threatened impris}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
onment does or does not constitute duress depends upon whether the imp}{\fs24\lang2057\langfe1033\langnp2057\insrsid16386905\charrsid4222883 risonment is lawful or unlawful}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid15075286 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
I do not doubt that the imprisonment for contempt of court was lawful according to the law of the State of Nevada and, as there is no oral evidence to cast doubt on the genuineness of the affidavits made by the Ms. I think I must accept that the withholdi
ng of release from prison until the documents had been executed is not such as to render those documents void or voidable.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid546002 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid9717973\charrsid4935280 B.}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4935280  }{
\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4935280 Excluded Person}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid9705722\charrsid4935280 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4222883 {\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4935280 {\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 Clause 43}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 (j) of the Trust Deed provides:
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2032217 {\fs24\lang2057\langfe1033\langnp2057\insrsid2032217\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4422515 {\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 43}{
\fs24\lang2057\langfe1033\langnp2057\insrsid12727241 (j). No power of the Protecto}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 r shall be exercisable by or for th}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6515473\charrsid4222883 e benefit of an Excluded Person}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid6515473\charrsid4222883 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6515473 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 The Deed of Removal and Appointment of Trustee was executed by the Ms and }{
\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883  and Protectors in purported removal of the Applicant as trustee and the appointment of CI as the new trustee.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6515473 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 The Deed of Amendment was executed by them also as }{
\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883  and Protectors and purported to change the definition of Excluded Person in the Fourth Schedule to the Trust Deed.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6515473 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 The Declaration of Resignation was executed by the Andersons in order to resign 
as Protectors of the Trust and to appoint the Commission as Protector in their place. It is necessary to recognize that this Declaration, although br}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 ief, is in two separate parts. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 First it evidences the resignation by the Ms of their position within}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883  the Trust as Protectors. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 This they were entitled to do, and in the absence of any sufficient evidence that their resignations were made under duress. I consider those resignations to }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 have been valid and effectual. }{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 The same comment does not necessarily apply to t
he remainder of the Declaration in which they purport to appoint the Commissio}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 n as Protector in their place. }{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
That is a matter which depends for its validity on whether it was done in order}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883  to benefit as Excluded Person.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
 The reference hereunder to the three documents therefore includes the Declaration only to the extent that it relates to the appointment of the Commission.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14760726 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
It was contended for the Applicant that each of those documents was invalid as being the purported exercise by the Ms in their capacity as Protectors of a power for the benefit of an Excluded Person.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid14760726 {\fs24\lang2057\langfe1033\langnp2057\insrsid6515473\charrsid4222883 The definition of Excluded P}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 ersons
}{\fs24\lang2057\langfe1033\langnp2057\insrsid14760726\charrsid4222883  in the Fourth Schedule to the Trust Deed (so far }{\fs24\lang2057\langfe1033\langnp2057\insrsid13242219 as }{\fs24\lang2057\langfe1033\langnp2057\insrsid14760726\charrsid4222883 
is relevant for present purposes) is:}{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4222883 {\fs24\lang2057\langfe1033\langnp2057\insrsid14760726\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid14760726 {\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid14760726\charrsid4222883 
The following list of excluded persons shall be interpr}{\fs24\lang2057\langfe1033\langnp2057\insrsid13242219 eted}{\fs24\lang2057\langfe1033\langnp2057\insrsid14760726\charrsid4222883  in its broadest sense, and shall include the following persons:

\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4222883 {\fs24\lang2057\langfe1033\langnp2057\insrsid14760726\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid2850513 {\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14760726 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 1. }{\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
All court, administrative or judicial bodies,}{\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883  except for the court, administrative or judicial bodies organized or empowered under the laws of the Cook Islands.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4422515\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 
\par }\pard \ql \li1440\ri0\widctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid14760726 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 2. }{\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 Any and all creditors, cla
}{\fs24\lang2057\langfe1033\langnp2057\insrsid14760726\charrsid4222883 imants, judgment creditors, etc. of any S}{\fs24\lang2057\langfe1033\langnp2057\insrsid13242219 ettlo}{\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 
r, of any Trustee, or any Discretionary Beneficiary, or any other Beneficiary under the Settlement.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4734673 {\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 
\par It must be acknowledged at once that CI, being an International Company registered in the Cook Islands under the International Companies }{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 Act, is not an Excluded Person.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883  The question, however, is whether the purpose of the three documents was for the }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 benefit}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 
 of an Excluded Person, and this has particular reference to the Commission, which is the sole shareholder in CI, and to the District Court.
\par 
\par It is clear that the formation and registration of CI was intended to enable the Commission to enforce complian
ce by the Ms with the orders of the District Court to account to the Court for the assets of the Trust and to repatriate all those assets to the United States}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883  In these circumstances it cannot in my view be disputed that execution of the three documents wa
s in each case for the purpose of procuring that compliance and that, if this were achieved, it would be to the benefit of the Comm}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 ission and the District Court. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 In other words, what was done was designed to bring the Trust assets within the jurisdiction of the District Court.
\par 
\par I should add that I am unable to construe the word }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 benefit}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883  as c}{\fs24\lang2057\langfe1033\langnp2057\insrsid4935280 onfined to material benefit. }{\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 
I accept that if CI was validly appointed as trustee then it would have an obligation to administer the Tru}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 st in terms of the Trust Deed. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 What has happened, however, is that CI was appointed trustee in order to enable the Commission and the District Court to compel the transfer of the Trust assets to the United }{
\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 States and so bring them within the jurisdiction of the District.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4734673\charrsid4222883 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 
\par It remains then to consider whether the Commission and the District, or either of them, was an Excluded Person.
\par 
\par The definition of Excluded Person as set out above includes first }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 all court, adm}{
\fs24\lang2057\langfe1033\langnp2057\insrsid14099900\charrsid4222883 inistrative and judicial bodies}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid14099900\charrsid4222883 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883  It can scarcely be contested that the District Court is a Court and also a judicial body and}{\fs24\lang2057\langfe1033\langnp2057\insrsid11410362\charrsid4222883 
 as such is an Excluded Person.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883  If, however, there should remain any doubt as to this, then attention must turn to whether the documents were executed for}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4935280  the benefit of the Commission.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883  In view of the fact 
that the Commission is the sole shareholder of CI it is inconceivable that the procurement of the execution of the documents could not have been for }{\fs24\lang2057\langfe1033\langnp2057\insrsid4935280 the benefit of the Commission. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 In that event it is necessary to consider whether the Commis}{\fs24\lang2057\langfe1033\langnp2057\insrsid11410362\charrsid4222883 sion is an }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid11410362\charrsid4222883 administrative body}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid11410362\charrsid4222883 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 
\par 
\par That expression is not a term of art, and it is not surprising that counsel have not been able to refer me to any judicial interpretation of it, and nor have}{\fs24\lang2057\langfe1033\langnp2057\insrsid13646488\charrsid4222883 
 I been able to find one myself. }{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 Garner}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 
s Dictionary of Modern English Usage defines }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 administrative}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883  as a }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 general, all purpose term meaning of }{
\fs24\lang2057\langfe1033\langnp2057\insrsid13980874\charrsid4222883 or pertaining to administration}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid13980874\charrsid4222883 ,}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883  which does n}{\fs24\lang2057\langfe1033\langnp2057\insrsid13242219 ot seem to carry the matter much further.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 
 It was contended on behalf of CI that }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 administrative}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883  shoul}{\fs24\lang2057\langfe1033\langnp2057\insrsid13242219 d be interpreted ejusdem generis}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883  with }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 court}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 
 and }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 judicial}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  bodies, and accordingly should be regarded as involving a body with at least quasi-judicial powers, and that this notion excluded the }{
\fs24\lang2057\langfe1033\langnp2057\insrsid13242219 Commission from the definition.}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  In the context in which the expression is used in the Trust Deed, ho
wever, I consider it is clearly to be contrasted with }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 court}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883  and }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 judicial}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883  bodies. }{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 Mr.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4935280  }{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 C, in his affidavit made in his capacity as an employee of the Commission, describes it as }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 an independent agency}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  which }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 enforces a variety of federal antitrust}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13980874\charrsid4222883  and consumer protection laws}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid13980874\charrsid4222883 .}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  Having regard to the fact that the Fourth Schedule requires the definition of Excluded Person to be int}{\fs24\lang2057\langfe1033\langnp2057\insrsid13980874\charrsid4222883 erpreted }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid13980874\charrsid4222883 in its broadest sense}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid13980874\charrsid4222883 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  it is hard to accept that the Commission is anything other than an administrative body in the
 generally accepted sense, and I am satisfied that it comes within the definition of Excluded Person.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 
\par In case I should be wrong in that conclusion, however, I consider that the Commission must certainly be regarded as a }{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 claimant}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  so as to come within para.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4935280  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 2 of the definition in the}{\fs24\lang2057\langfe1033\langnp2057\insrsid15808703\charrsid4222883  Fourth Schedule.}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 
 It was the Commission which was the plaintiff in the proceedings which were commenced against the Ms and the various companies in which they were said to have been involved, and I can see no distinction between its status as plaintiff and as a claimant.

\par 
\par Perhaps it should be added that the Commission itself, in its attempt to create a situation in which it could obtain repatriation of the Trust assets, appears to have recognized that it fell within}{
\fs24\lang2057\langfe1033\langnp2057\insrsid15808703\charrsid4222883  the expression Excluded Person}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  and for this reason procured the execution by the M}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 s of the Deed of Amendment by which it purported to amend the Fourth Schedule by deleting the definition of Excluded Person.
\par 
\par For the reasons I have given I consider that the three documents are each invalid as having been made for the benefit of the Commission and the District Court (or either of them).
\par 
\par It remains to consider that final question asked in the Application, namely whether, if the Court holds that the appointment of the Commission as Protector is not valid, some other person or entity should be appointed as Protector, and}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2257619\charrsid4222883 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  if so, who that should be.
\par 
\par In view of the decision I have reached that the Declaration of Resignation was a valid document in so far as it related to the resignation of the Ms but was invalid as }{\fs24\lang2057\langfe1033\langnp2057\insrsid14377407\charrsid4222883 to }{
\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 the purported appointment of CI, the office of Protector is at present vacant.
\par 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4935280 Subclause 43}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 
(h) of the Trust Deed provides that if at any time there shall be no Protector then all powers, duties and obligations of the Protector shall be vested in the Trustees until a new}{\fs24\lang2057\langfe1033\langnp2057\insrsid6685994\charrsid4222883 
 Protector}{\fs24\lang2057\langfe1033\langnp2057\insrsid10756967\charrsid4222883  is appointed. }{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 In view of the fact that in certain circumstances the Protect}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2380787\charrsid4222883 or has a power of veto over some}{\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883  of the Trustee}{\fs24\lang2057\langfe1033\langnp2057\insrsid4222883 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 s powers}{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 , it would seem to be inappropriate to allow the present interim status of the Applicant as }{
\fs24\lang2057\langfe1033\langnp2057\insrsid2850513\charrsid4222883 Protector}{\fs24\lang2057\langfe1033\langnp2057\insrsid983847\charrsid4222883  to remain indefinitely.}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 I accordingly consider that the appropriate course is for the}{\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883  Court to appoint a Protector. }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
However, counsel have not made any reference to who this should be and I am in no position to decide whom it would be appropriate to appoint. This must, therefore, be a matter to be reserved for further submission.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid2707000\charrsid4222883 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
\par }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4935280 Summary
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
\par Reverting to the form of the Application for Directions, there will be the following declarations:
\par 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 1. }{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
The Deed of Removal and Appointment of Trustee is invalid as having been made in breach of cl.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4935280  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
43(j) of the Trust Deed for the benefit of an Excluded Person or Excluded Persons, namely the Commission and the District Court of Nevada, or either of them.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 2. }{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
The Deed of Amendment is invalid as having been executed by the }{\fs24\lang2057\langfe1033\langnp2057\insrsid14773959 settlors}{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
 in purported exercise of a power which, by virtue of an event of duress, they no longer had}{\fs24\lang2057\langfe1033\langnp2057\insrsid983847\charrsid4222883 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
 and also that the Deed was for the benefit of an Excluded Person or Excluded Persons, namely the Commission and the District Court, or either of them.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 3. }{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 The appointment }{
\fs24\lang2057\langfe1033\langnp2057\insrsid983847\charrsid4222883 of the Commission as substitute}{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883  Protector in the Declaration of Resignation is inva}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16071516 lid as being in breach of cl.}{\fs24\lang2057\langfe1033\langnp2057\insrsid1329340  }{\fs24\lang2057\langfe1033\langnp2057\insrsid16071516 43}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 (j) of the Trust Deed as the exercise of a power for the benefit of an Excluded Person, namely the Commission.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid738873\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 4. }{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 Leave is reserved
 to apply further for the appointment of a Protector or Protectors for the purposes of the Trust.
\par }\pard \ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid546002 {\fs24\lang2057\langfe1033\langnp2057\insrsid738873\charrsid4222883 
\par }\pard \ql \li720\ri0\widctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid16071516 {\fs24\lang2057\langfe1033\langnp2057\insrsid546002\charrsid4222883 5. }{\fs24\lang2057\langfe1033\langnp2057\insrsid6898328\charrsid4222883 
The Applicant is entitled to costs, and leave is reserved to it to apply for an order in that regard.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10759795\charrsid4222883 
\par }}