Banking Case Study Example | Topics and Well Written Essays - 1500 words

Banking - Case Study Example The Trust is governed by the terms of the trust document which are usually written and in a deed form. It can be said that trusts continues to play a significant contribution in all common law systems all over the world. In the United Kingdom, there are five main kinds of trust which come into being along side the transition with respect to laws and court cases. Among them are Interest in Possession trusts, the Accumulation and Maintenance trust, the Discretionary trust, the Bare trust and the Charitable trust. Amidst these transition and improvement of the legal system, in general, a trust necessitates for the following: There must be a clear intention to create a trust; the subject matter must be unmistakably identified; and the beneficiaries of the trust must be evidently identified or at least ascertainable. Aside from the foregoing, there are additional formality required in express trusts as provided for in the Wills Act of 1837 which provides that all testamentary trusts must be in writing, signed by the testator or by someone in his presence and by his direction and be attested by two witnesses. The Law of Property Act of 1925 provides that a declaration of trust regarding any land or any in terest therein must be manifested and proved in writing signed by some person who is able to declare such trust or by his will and with respect to shares of stock, the Companies Act of 1985 in general states that a share transfer from must be executed and delivered with the share certificates followed by entry of the name of the new owner in the company books. Aside from the foregoing, it is also noteworthy to generally discuss the concept of Constructive trust. This type of trust is not created by an agreement as mentioned before. A constructive trust is made obligatory by the law as an equitable remedy. A Constructive trust takes place for the reason of some wrongdoing, where the wrong doer get hold of the legal title to property and cannot be allowed to stand benefited from it. It is essentially a legal fiction, which arises by operation of law as a rejoinder to certain occurrences. The Case of BCCI Overseas and ICIC Overseas v. Akindele (2000) In the case of Bank of Credit and Commerce International (Overseas) LTD (BCCI Overseas for brevity) and International Credit Investment Company (Overseas) LTD (ICIC Overseas for brevity) v. Chief Labode Onadimaki Akindele (Akindele for brevity) is a claim of liquidators under the knowing assistance and knowing receipts of a constructive trust. The main issue of the instant case is whether or not there is Akindele was liable to BCCI Overseas and ICIC Overseas for the amount of US $ 6,679,226.33 plus interest as a constructive trustee and alternatively by way of damages for conspiracy to defraud. The transaction has to do with an investment of Akindele of US$ 10 million through ICIC Overseas in the purchase of 250,000 shares of BCCI Holdings of the fully paid up value of US$10 each, made in 1985. Claimants BCCI and ICIC Overseas alleged that both the