May we?

The Tawhiri Trust Board relates to an application by the trust board of a charitable trust for permission to sell trust property to another charitable trust that is better placed to maintain the trust property, which is a classic yacht.

By way of background as noted at [3] to [8]:

The purposes of the HWB Trust include “the preservation, restoration, conservation, purchase, acquisition and maintenance of examples of historic wooden vessels of all descriptions built in New Zealand”

The Court’s consent to the proposed sale is necessary, because as noted at [12] of the decision “… the effect of the sale is likely to bring the Trust to an end…”

Importantly, as noted at [11] to [13]:

In Re Nelson Historic Theatre Trust Board, the Court was satisfied that a variation of the trust’s purposes (without selling the theatre) would not be an appropriate course of action due to “… the very specific objects of the Trust which were centred on the preservation and maintenance of a particular building…” that the trust did not have the resources to maintain.

La hood J concluded at [21] that “… the general objectives of the HWB Trust, alongside the intent
expressed by the HWB Trust to remain connected to the Nelson/Tasman Bay area (and make the Tawhiri available annually for the youth selected by these clubs) accords closely to the terms of the original trust and thereby the “essence” of the Trust. I accordingly agree with the applicant’s position that in the circumstances, sale of the trust property appears to be the best way of ensuring the objects of the Trust can be carried out in future.”

References

• The Tawhiri Trust Board [2025] NZHC 390
• Charitable Trusts Act 1957, section 21
• Re Nelson Historic Theatre Trust Board [2014] NZHC 987