LEGAL PRINCIPLE: EQUITY AND TRUSTS – Trustees – Property Vested in Trustees – Interests of Beneficiaries
PRINCIPLE STATEMENT
The property of the church is vested in the Board of Trustees. But they are trustees for the true owners — members of the church. It is imperative, therefore, that the interests of members of the Church must be taken into account in whatever course the court would take.
RATIO DECIDENDI (SOURCE)
Per Ogundare, JSC, in Owodunni v. Registered Trustees of Celestial Church of Christ (2000) NLC-1261995(SC) at p. 26; Paras B–C.
"The property of the church is vested in the Board of Trustees. But they are trustees for the true owners — members of the church. It is imperative, therefore, that the interests of members of the Church must be taken into account in whatever course the court would take."
EXPLANATION / SCOPE
Trustees hold legal title to property but are trustees for the beneficiaries—the members of the association. In any judicial proceeding involving trust property or trustee actions, the court must consider the interests of the beneficiaries. Trustees cannot act solely in their own interest; they owe fiduciary duties to members. This principle ensures that courts protect the ultimate beneficial interests when adjudicating disputes involving trustees, recognizing that trustees are custodians, not owners, of the property held in trust.