Whangarei Tourism Trust (in liquidation) [2014] NZHC 1083

Whangarei Tourism Trust (in liquidation) [2014] NZHC 1083

Pursuant to s27 Charitable Trusts Act 1957 the Court will direct disposition of surplus assets; here cogent evidence established that Whangarei Art Museum Trust is the appropriate recipient, public notice requirements were met and no opposition was filed, and therefore the surplus of $145,131 is ordered transferred to the Museum Trust, with the liquidator's reasonable costs to be paid from the surplus.

Citation
[2014] NZHC 1083
Parties
Applicant (liquidator): Stephen Kim Bennett; Subject Trust: Whangarei Tourism Trust (in liquidation); Proposed Recipient/respondent: Whangarei Art Museum Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
21 May 2014
Procedural Posture
Application Under Charitable Trusts Act 1957 S27 (distribution of Surplus Assets) / Determination on the Papers; Final Judgment
Outcome
Order made transferring surplus assets of $145,131 to Whangarei Art Museum Trust pursuant to s27 Charitable Trusts Act 1957
Legal Topics
Distribution of Surplus Assets, Section 27 Charitable Trusts Act 1957, Transfer of Assets on Liquidation, Public Notice/advertisement
Charitable Trusts Trusts and Trustees Insolvency/liquidation Civil Procedure Distribution of Surplus Assets Section 27 Charitable Trusts Act 1957 Transfer of Assets on Liquidation Public Notice/advertisement

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Parties

Stephen Kim Bennett

Applicant (liquidator)

Whangarei Tourism Trust (in liquidation)

Subject Trust

Whangarei Art Museum Trust

Proposed Recipient/respondent

Procedural Posture

Application Under Charitable Trusts Act 1957 S27 (distribution of Surplus Assets) / Determination on the Papers; Final Judgment

Legal Issues

  1. 1 Whether the Court should order transfer of surplus assets under s27 to Whangarei Art Museum Trust
  2. 2 Whether statutory/public notice requirements and opportunity to oppose were satisfied
  3. 3 Whether Attorney‑General involvement was required post‑liquidation

Ratio Decidendi

Pursuant to s27 Charitable Trusts Act 1957 the Court will direct disposition of surplus assets; here cogent evidence established that Whangarei Art Museum Trust is the appropriate recipient, public notice requirements were met and no opposition was filed, and therefore the surplus of $145,131 is ordered transferred to the Museum Trust, with the liquidator's reasonable costs to be paid from the surplus.

Court Disposition

Order made transferring surplus assets of $145,131 to Whangarei Art Museum Trust pursuant to s27 Charitable Trusts Act 1957

Orders

  • Surplus assets held by the liquidator (total $145,131) are to be transferred to Whangarei Art Museum Trust pursuant to s27 Charitable Trusts Act 1957
  • The liquidator, Stephen Kim Bennett, is entitled to his reasonable costs (including legal fees and disbursements) to be paid out of the surplus before transfer