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Charitable trusts, Charities, Deed of Trust, inherent jurisdiction

Inherent jurisdiction utilised to adopt trust deed

Section 8 of the Trusts Act 2019 confirms the inherent jurisdiction of the High Court to supervise and intervene in the administration of a trust (except to the extent that the Trusts Act provides otherwise). Te Whanau Tupu Ngatahi O Aotearoa Playcentre Aotearoa relates to application for approval of changes to the a charitable trust incorporated under the Charitable Trusts Act 1957.

The applicant Te Whanau Tupu Ngatahi O Aotearoa Playcentre Aotearoa successfully sought an order approving its Constitution being replaced with a Deed of Charitable Trust (the Trust Deed) due to the Constitution no longer being fit for purpose. Although the voting process under the Constitution had achieved the required 80% support, there were concerns regarding the voting process.

By way of background:

Although the adoption of the Trust Deed did not require a scheme to be laid under Part 3 of Charitable Trusts Act 1957, the proceedings were served on the Attorney General who adopted the approach that would have been taken when reporting on a scheme presented under Part 3 of Charitable Trusts Act.

Although one of the listed charitable objects was not carried over to the Trust Deed, the Court accepted the advice that the deleted object had not been undertaken for some time, its omission in the Trust Deed would not contravene the Constitution and nor would it alter the charitable status or purpose of Playcentre Aotearoa. As noted at [32]:

In conclusion before making the order sought pursuant to section 8 of the Trusts Act, Cull J stated at [37] to [39]:

References:

  • Te Whanau Tupu Ngatahi O Aotearoa Playcentre Aotearoa [2023] NZHC 1827
  • Charitable Trusts Act 1957
  • Trusts Act 2019, s 8

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