RE TAURANGA ENERGY CONSUMER TRUST [2021] NZHC 3469

RE TAURANGA ENERGY CONSUMER TRUST [2021] NZHC 3469

The Court held the Current Trustees had lawful, express powers under the TECT Deed (notably cls 5,6,9 and broad cl 13 variation powers) and under the 2002 Charitable Trust deed to implement the Proposed TECT Restructure; the variations did not impermissibly alter the trust substratum, the CCP complied with deed requirements, trustees properly exercised duties under the Trusts Act 2019 and no disqualifying conflicts or predetermination was established; the Court granted directions under s133 and exercised inherent jurisdiction to permit implementation and to remove redundant cls 9.3 and 13.3.

Citation
[2021] NZHC 3469
Parties
First Plaintiffs / Current Trustees: WILLIAM BEAU HOLLAND; NATALIE ANNE BRIDGES; PETER JOHN BLACKWELL; PETER JOHN FARMER; MARK EDMOND ARUNDEL; TINA LYNN JENNEN as trustees of the TAURANGA ENERGY CONSUMER TRUST; Second Plaintiffs / Trustees of 2002 Charitable Trust: WILLIAM BEAU HOLLAND; NATALIE ANNE BRIDGES; PETER JOHN BLACKWELL; PETER JOHN FARMER; MARK EDMOND ARUNDEL; TINA LYNN JENNEN as trustees of the TECT CHARITABLE TRUST (2002); Defendant / Interested Party: WILLIAM HERMANUS EDUARD JONKERS
Court
High Court
Jurisdiction
New Zealand
Judgment Date
16 December 2021
Procedural Posture
Application for Directions Under the Trusts Act 2019 (s133) and Declaration/removal Under S130 and Exercise of Inherent Jurisdiction / Hearing Concluded; Judgment Delivered (final)
Outcome
Application granted. Court directed that it is proper and lawful for the Current Trustees to implement the Proposed TECT Restructure in respect of TECT and the 2002 Charitable Trust; redundant clauses 9.3 and 13.3 removed; costs reserved.
Legal Topics
Variation of Trust Deed, Directions Under S133 Trusts Act 2019, Fiduciary Duties and Duties Under Trusts Act Ss23 27, Conflict of Interest, Consultation Obligations / Consumer Consultative Procedure, Substratum Doctrine, Winding Up and Asset Disposition, Interpretation of Trust Deeds
Trusts Equity Commercial Law Administrative Law Variation of Trust Deed Directions Under S133 Trusts Act 2019 Fiduciary Duties and Duties Under Trusts Act Ss23 27 Conflict of Interest +4 more

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Parties

WILLIAM BEAU HOLLAND; NATALIE ANNE BRIDGES; PETER JOHN BLACKWELL; PETER JOHN FARMER; MARK EDMOND ARUNDEL; TINA LYNN JENNEN as trustees of the TAURANGA ENERGY CONSUMER TRUST

First Plaintiffs / Current Trustees

WILLIAM BEAU HOLLAND; NATALIE ANNE BRIDGES; PETER JOHN BLACKWELL; PETER JOHN FARMER; MARK EDMOND ARUNDEL; TINA LYNN JENNEN as trustees of the TECT CHARITABLE TRUST (2002)

Second Plaintiffs / Trustees of 2002 Charitable Trust

WILLIAM HERMANUS EDUARD JONKERS

Defendant / Interested Party

Procedural Posture

Application for Directions Under the Trusts Act 2019 (s133) and Declaration/removal Under S130 and Exercise of Inherent Jurisdiction / Hearing Concluded; Judgment Delivered (final)

Legal Issues

  1. 1 Whether the Current Trustees have power under the TECT Deed (cl 13 and related provisions) to implement the Proposed TECT Restructure
  2. 2 Whether the proposed variations impermissibly alter the substratum of the trust
  3. 3 Whether trustees complied with the consumer consultative procedure (CCP) and other mandatory duties in the Trusts Act 2019

Ratio Decidendi

The Court held the Current Trustees had lawful, express powers under the TECT Deed (notably cls 5,6,9 and broad cl 13 variation powers) and under the 2002 Charitable Trust deed to implement the Proposed TECT Restructure; the variations did not impermissibly alter the trust substratum, the CCP complied with deed requirements, trustees properly exercised duties under the Trusts Act 2019 and no disqualifying conflicts or predetermination was established; the Court granted directions under s133 and exercised inherent jurisdiction to permit implementation and to remove redundant cls 9.3 and 13.3.

Court Disposition

Application granted. Court directed that it is proper and lawful for the Current Trustees to implement the Proposed TECT Restructure in respect of TECT and the 2002 Charitable Trust; redundant clauses 9.3 and 13.3 removed; costs reserved.

Orders

  • Order under s133 Trusts Act 2019 (and inherent jurisdiction) directing it is proper and lawful for the Current Trustees to implement the Proposed TECT Restructure in relation to TECT
  • Order under s133 Trusts Act 2019 (and inherent jurisdiction) directing it is proper and lawful for the Current Trustees to implement the Proposed TECT Restructure in relation to the 2002 Charitable Trust (including winding up/variation as proposed)