s.14Reformation
14
Section 14Part 2 — The rule against perpetuities

Reformation

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Where it has become apparent that, apart from this section, a disposition would be or becomes void on the ground that it infringes the rule against perpetuities, and where the general intention originally governing the disposition can be ascertained in accordance with the normal principles of interpretation of instruments and the rules of evidence, the disposition may, on application to the Grand Court by an interested person, be reformed so as to give effect to such general intention within the limits, as nearly as circumstances permit, of the rule against perpetuities established by this Act.
Subsection (1) does not apply where the disposition has been the subject of a valid compromise.
An application to the Grand Court under subsection (1) may not be made more than one year after the end of the perpetuity period except with the leave of the Grand Court.
The Grand Court may reform a disposition pursuant to subsection (1) before the end of the perpetuity period but only if satisfied that no significant prejudice would thereby be done to any interested person, other than a person consenting to the reformation.
A disposition may be reformed pursuant to this section though made before the 1st August, 1995, or made in exercise of a special power of appointment created before the 1st August, 1995, if it infringes a rule against perpetuities previously in effect, but in such cases —
the reference at the end of subsection (1) to "the rule against perpetuities established by this Act" shall be taken as a reference to the rules against perpetuities previously in effect; and
subsections (3) and (4) do not apply and the disposition may be reformed at any time, but not —
if the disposition has been declared invalid by any order declared invalid by any order or judgment made or given in any legal proceedings;
if the property comprised in the disposition has paid or transferred to, or applies for the benefit of, or set apart for, the person or persons entitled by reason of the invalidity of the disposition; or
if any person has reasonably so altered that person's position in reliance on the invalidity of the disposition that, in the opinion of the Grand Court, having regard to all possible implications in respect of other persons, it would be inequitable to reform the disposition in the manner under consideration.
Subject to any contrary order of the Grand Court, a reformation made under subsection (5) shall be deemed for all purposes to take effect from the date of the disposition.

Cross References