The issue the UK Supreme Court had to decide in Rukhadze v Recovery Partners GP Ltd [2025] UKSC 10; [2025] 2 WLR 529 was undoubtedly an important one. It concerned the scope of the so-called profit rule as it applies to trustees and other fiduciaries such as company directors. In the words of the Court, this rule requires that ‘fiduciaries will act with single-minded loyalty toward their principals (or beneficiaries) which means that the fiduciary must account to the principal for any profits which the fiduciary makes from that fiduciary relationship, unless the principal has given its fully informed consent to the fiduciary keeping them for himself’. Any profits so made are deemed to be held by way of a constructive trust for the principal or beneficiary from the moment they are received by the fiduciary … (more)
[Tom O’Malley, Sentencing, Crime and Justice, 28 January 2026]
Leave a Reply