Author: Ian Hammond (1997)

(Reported at [1997] Penions Law Reports 99)

Ian Hammond
(taken from Isssue No 4 – December 1997)

 1 Background

This was a case in which a company established a pension scheme in trust for its employees. The trustee company was mainly staffed by people closely involved with the employer.

In July 1990, the trustees lent £3 million of scheme money to the company without security. Two months later, without taking any independent advice, they contracted to buy the company’s main site for £3.5 million.