What was established in the case of Re Denley's Trust Deed (1969)?
The suggestion from this case is that a purpose trust will be upheld provided that there is an ascertained or ascertainable class of people who would benefit, directly or indirectly, from the property being applied for a stipulated purpose, provided that the benefit to such people is not too indirect or intangible. In Goff J's view, the beneficiary principle is concerned only with ensuring that trusts are enforceable, and, where there are people interested in the furtharance of the purpose, these people can enforce the trust.
This case concerned a trust that stated that the transferred land, 'must be maintained and used as and for the purpose of a recreation or sports ground primarily for the benefit of the employees of the company and secondarily for the benefit of such other persons as the trustee may allow to use the same'.
Goff J had this to say about the trust;
there will be trusts, the carrying out of which would confer a benefit so indirect or intangible or which is otherwise framed as not to give those persons any locus standi to apply to court to enforce the trust...in which case the beneficiary principle would apply to invalidate the trust. The present is not of that character...in my judgement the beneficiary principle is confined to purpose or object trusts which are abstract or impersonal...where the trust, though expressed as a purpose, is directly or indirectly for the benefit of an individual or individuals, it seems to me that it is in general outside the mischief of the beneficiary principle.'