§ LORD ST. LEONARDSsaid, he presumed that it was the intention of the Government to bring in next Session a Bill to render in certain cases breaches of trust by executors and trustees criminal acts. He had no doubt that that Bill would meet 2382 with very general acceptance. Great care, however, should be taken not to subject to criminal punishment such executors and trustees—whose office was merely gratuitous—as acted innocently, although erroneously. He regretted to see that the office of trustee and executor had been made a sort of business. Two Bills had been introduced into Parliament to enable the South Sea Company and another company to carry on, on a gigantic scale, the trade of executing the trusts of every estate in the kingdom. The project of the former company was a failure, but the latter company had commenced business on the limited liability principle. He could not help feeling that a great number of trustees and executors would be compelled to procure the aid of that company in the execution of the trusts which had been reposed in them by their testators; but nothing could be more dangerous to the best interests of society than the perversion of the office of trustee and executor into a mere trade. His main object in adverting to this subject was to urge upon the Government the necessity of accompanying their promised Bill to render criminal certain breaches of trust by another measure for the protection of such trustees as might have honourably and innocently, although erroneously, acted in the execution of their office. He regretted that at present the courts of equity punished with extreme harshness trustees and executors even when it was proved that they ought not to be regarded as answerable for the breaches of trust preferred against them; and he therefore hoped that in the ensuing recess his noble and learned Friend on the woolsack would consider the subject with the view of measures being brought in next Session not only for the punishment of criminals defaulting, but also for the protection of innocent, though misled, trustees.
THE LORD CHANCELLORsaid, that the noble and learned Lord was right in supposing that Government intended to bring in the Bill next Session on the subject of criminal breaches of trust, which would, if circumstances had permitted, have been introduced in the present Session. It was difficult to define what constituted a criminal breach of trust; but what had been done was to extend that denomination to certain defined breaches of trust, wilfully committed by the trustee for his own benefit. He did not mean to say that cases equally criminal might not 2383 be left untouched because of the impossibility of giving a definition to include them. With respect to the hardship that might affect innocent trustees for not having discharged their duty when they wished to do so, he feared that was a difficulty which it was impossible for the Legislature to meet.
§ LORD ST. LEONARDSthought that the proposed Bill should be extended to any society taking on itself the office of trustee and executor.