$(3)$ In $1956$ Sir Terry Wong died. He left a will and in terms of that will a trust was created called $$the Sir Terry Wong Charitable Fund$($the fund$).$ A capital sum of $$500,000$ was bequeathed to the fund. That sum was placed in the care of the appointed trustees, a wholly$-$owned subsidiary of BlueWaters Banking Group $($BW Group$),$ and since that time the income from the fund has been used to support various charitable projects in the Far East. The fund has prospered. Today it has capital assets of something like $$450,000,000.$ The trustees, however, have found it increasingly difficult to make prudent investment decisions without the active assistance of market specialists. The trustees had previously resorted to professional advice from an asset management company which was another wholly$-$owned subsidiary of BW Group, amongst others. Investments opportunities have grown dramatically over the past $20$ years, but they have been accompanied the increasing complexity and volatility in global markets. In the view of the trustees, if the assets of the fund are to be best preserved and enhanced, it is now essential that they be given the discretion not simply to seek the advice of financial and market specialists but to be able to entrust the fund$$s assets with those specialists so that they may be actively managed by them.

The trustees now sought to be given the discretion to entrust the fund$$s assets to be managed by financial and market specialists. The proposed scheme included safeguards, in particular that the trustees would have regard to the charitable nature of the trust and would invest in a conservative fashion and that any delegation had to include a term allowing the delegation to be revoked at any time. The suggestion that the fund$$s assets could be entrusted to the related asset management company was objected to by the Attorney General $($AG$).$ The AG was of the view that if this were to occur there would be a breach of the fundamental rule of equity, namely that a trustee should not either directly or indirectly make a profit from his trust since the revenue of the asset management company contributed to the revenue of the group as a whole. The AG asked the court to impose a condition to the effect that the trustees could not employ the services of any wholly$-$owned subsidiary of the BW Banking Group to manage or advise on the fund$$s investments.

Discuss the principles of delegation and critically assess whether the court should impose such a condition on the trustees.