No beneficiary No standing

The background to Taranaki Community Accountability Society Inc v Ussher is an unsuccessful application for an interim injunction and a prospective costs order. The applicant had sought to restrain the trustees of the Toi Foundation (the Foundation) from voting on a proposed sale of shares in TSB Bank and requiring the Foundation to apply for directions under section 133 of the Trusts Act 2019 ahead of any such vote.

The Foundation is a charitable trust that was created in 1988 to hold the shares in TSB. The Foundation has more recently embarked on a course of action to diversify its investments and improve the returns. The outcome of this course of action is a proposed merger between TSB and Heartland Bank.

The applicant, Taranaki Community Accountability Society Inc (TCAS) was of the view that the Foundation’s proposed course of action is unlawful and that the Foundation’s trustees are in breach of trust on account of inadequate community consultation.

As well as injunctive relief TCAS sought to have the Foundation apply for directions pursuant to section 133 of the Trusts Act. The second cause of action was a review of the proposed decision pursuant to section 126 of the Trusts Act, the third cause of action was in the same vein.

TCAS’s position is set out at [31] to [33] as follows:

A key question of the Court was whether TCAS has standing on account of its second and third causes of action.

The Foundation’s position was that sections 126, 127 and 133 of the Trusts Act do not apply as it is a charitable trust and does not have beneficiaries, which the Foundation says is a pre-requisite for TCAS’s second and third causes of action.

As set out at [50] to [53]:

Isac J also held that there was no basis for the claim be brought under the Court’s inherent jurisdiction.

References:

• Taranaki Community Accountability Society Inc v Ussher [2026] NZHC 2519
• Trusts Act 2019, sections 126,127 and 133