SCOTT & OTHERS, AS TRUSTEES OF THE BOARD OF PACIFIC TRUST CANTERBURY v PACIFIC TRUST CANTERBURY [2016] NZHC 2076

SCOTT & OTHERS, AS TRUSTEES OF THE BOARD OF PACIFIC TRUST CANTERBURY v PACIFIC TRUST CANTERBURY [2016] NZHC 2076

Given the Trust's demonstrated imminent insolvency, cash shortfall and risk to realisable and confidential client assets, the Court was satisfied under s246 (as applied by s25(4) of the Charitable Trusts Act) that it was necessary or expedient to appoint interim liquidators immediately; the proposed liquidators were not disqualified despite firm connections to creditors and were suitably experienced to act.

Citation
[2016] NZHC 2076
Parties
Plaintiff Trustee of the Board of Pacific Trust Canterbury: Selma Scott; Plaintiff Trustee of the Board of Pacific Trust Canterbury: Earl Simpson; Plaintiff Trustee of the Board of Pacific Trust Canterbury: Mosese Havili Fifita; Plaintiff Trustee of the Board of Pacific Trust Canterbury: Liz Keneti; Plaintiff Trustee of the Board of Pacific Trust Canterbury: Memea Maaelopa; Plaintiff Trustee of the Board of Pacific Trust Canterbury: Sam Utai; Plaintiff Trustee of the Board of Pacific Trust Canterbury: Tule Misa; Defendant Charitable Trust (subject of Liquidation Application): Pacific Trust Canterbury
Court
High Court
Jurisdiction
New Zealand
Judgment Date
2 September 2016
Procedural Posture
Application for Liquidation of a Charitable Trust Under the Charitable Trusts Act 1957 / Application for Appointment of Interim Liquidators Determined on the Papers
Outcome
Interim liquidators appointed
Legal Topics
Appointment of Interim Liquidator, Just and Equitable Winding Up, Insolvency of Charitable Trust, Conflict of Interest/disqualification
Charitable Trusts Insolvency Company Law Trust Law Appointment of Interim Liquidator Just and Equitable Winding Up Insolvency of Charitable Trust Conflict of Interest/disqualification

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Parties

Selma Scott

Plaintiff Trustee of the Board of Pacific Trust Canterbury

Earl Simpson

Plaintiff Trustee of the Board of Pacific Trust Canterbury

Mosese Havili Fifita

Plaintiff Trustee of the Board of Pacific Trust Canterbury

Liz Keneti

Plaintiff Trustee of the Board of Pacific Trust Canterbury

Memea Maaelopa

Plaintiff Trustee of the Board of Pacific Trust Canterbury

Sam Utai

Plaintiff Trustee of the Board of Pacific Trust Canterbury

Tule Misa

Plaintiff Trustee of the Board of Pacific Trust Canterbury

Pacific Trust Canterbury

Defendant Charitable Trust (subject of Liquidation Application)

Procedural Posture

Application for Liquidation of a Charitable Trust Under the Charitable Trusts Act 1957 / Application for Appointment of Interim Liquidators Determined on the Papers

Legal Issues

  1. 1 Whether it is necessary or expedient to appoint interim liquidators to maintain the value of the trust's assets under s246 as applied by s25(4) of the Charitable Trusts Act 1957
  2. 2 Whether the Trust is insolvent and therefore justifies liquidation/appointment of liquidators
  3. 3 Whether proposed liquidators are disqualified or conflicted given firm acts for creditors

Ratio Decidendi

Given the Trust's demonstrated imminent insolvency, cash shortfall and risk to realisable and confidential client assets, the Court was satisfied under s246 (as applied by s25(4) of the Charitable Trusts Act) that it was necessary or expedient to appoint interim liquidators immediately; the proposed liquidators were not disqualified despite firm connections to creditors and were suitably experienced to act.

Court Disposition

Interim liquidators appointed

Orders

  • Wendy Ann Somerville and Malcolm Grant Hollis are appointed as interim liquidators of the Board of Pacific Trust Canterbury
  • The interim liquidators may exercise their powers individually under s242 of the Companies Act 1993