UK - Trustees who suspect maladministration by scheme administrators must not act too hastily to dismiss them, says Linklaters.
The law firm claims that trustees could leave themselves open to legal action for breach of contractual agreements if they do not consider their actions carefully.
Pensions litigation partner Mark Blyth said: “Care must be taken not to throw the administrators out on to the streets in breach of any agreement.
“Even if trustees believe there has been maladministration on behalf of the contracted company, they must still be aware of their own contractual obligations.”
Blyth added that if maladministration had happened several years ago, trustees must keep an eye on the expiration of “possible limitation periods”, otherwise they could find themselves with no claim against the third party.
He said: “Claims will typically be time-barred after six years from when the suspected maladministration took place, or three years after the trustees ought reasonably to have been aware of the claim.”
The “long stop” limit of any claim of negligence is currently set at 15 years.
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