RE THE FRANK SYDENHAM SCHOLARSHIP TRUST HC TAU CIV 2011-470-001088

RE THE FRANK SYDENHAM SCHOLARSHIP TRUST HC TAU CIV 2011-470-001088

The Court held that the trust's original charitable purpose remained charitable but had become inexpedient due to restrictive geographic and administrative provisions; accordingly s32 authorised a limited extension of the geographic catchment to the Bay of Plenty Region and s33 authorised administrative changes (removal of bond in favour of a good faith undertaking, substitution and reduction of the selection committee, and authorisation to compensate members), and the scheme was a proper, approvable charitable scheme under Part III of the Charitable Trusts Act 1957.

Citation
openlaw-fe726722_75aa_464c_baaf_a873c917d128.pdf
Parties
Applicant / Trustee: The New Zealand Guardian Trust Company Limited as Trustee of the Frank Sydenham Scholarship Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
4 April 2012
Procedural Posture
Application to Vary Charitable Trust Under the Charitable Trusts Act 1957 / Judgment Approving Scheme (final)
Outcome
Scheme approved; order made under Part III of the Charitable Trusts Act 1957 varying the trust as drafted by the trustee
Legal Topics
Variation of Charitable Trust (s32), Alteration of Mode of Administration (s33), Cy Pres Doctrine, Geographical Limitation of Charitable Gifts, Residency Conditions for Scholarships, Court Approval of Schemes (s56)
Charitable Trusts Trusts Equity Variation of Charitable Trust (s32) Alteration of Mode of Administration (s33) Cy Pres Doctrine Geographical Limitation of Charitable Gifts Residency Conditions for Scholarships +1 more

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Parties

The New Zealand Guardian Trust Company Limited as Trustee of the Frank Sydenham Scholarship Trust

Applicant / Trustee

Procedural Posture

Application to Vary Charitable Trust Under the Charitable Trusts Act 1957 / Judgment Approving Scheme (final)

Legal Issues

  1. 1 Whether the trust purposes remain charitable and whether s32 applies to permit alteration of purpose by reason of impracticability/inexpediency
  2. 2 Whether the proposed widening of the geographic catchment is justified under s32
  3. 3 Whether removal of bond and substitution of a good faith undertaking facilitates administration under s33

Ratio Decidendi

The Court held that the trust's original charitable purpose remained charitable but had become inexpedient due to restrictive geographic and administrative provisions; accordingly s32 authorised a limited extension of the geographic catchment to the Bay of Plenty Region and s33 authorised administrative changes (removal of bond in favour of a good faith undertaking, substitution and reduction of the selection committee, and authorisation to compensate members), and the scheme was a proper, approvable charitable scheme under Part III of the Charitable Trusts Act 1957.

Court Disposition

Scheme approved; order made under Part III of the Charitable Trusts Act 1957 varying the trust as drafted by the trustee

Orders

  • Clause 6 amended to extend eligibility to past pupils within the Bay of Plenty Region (statutory boundary of the Bay of Plenty Regional Council)
  • Clause 10 replaced so awards may be withheld only if the Selection Committee considers there is no or only one suitable candidate