RE: Ngati Mutunga O Wharekauri Trust (in liquidation) & Anor HC WN CIV-2010-485-2185

RE: Ngati Mutunga O Wharekauri Trust (in liquidation) & Anor HC WN CIV-2010-485-2185

The Court approved distribution under s27 to the Ngāti Mutunga O Wharekauri Iwi Trust because the New Trust's objects were as nearly consistent as possible with the original trust and society, there was no identified alternative recipient and statutory and advertising requirements were satisfied; distribution is subject to prudent preservation for and resolution of creditors' claims according to the directed timetable.

Citation
openlaw-15bc89af_3d8f_4d2d_8210_75ea160a8f02.pdf
Parties
Original Trust in Liquidation: Ngati Mutunga O Wharekauri Trust (in liquidation); Society in Liquidation: Ngati Mutunga O Wharekauri Incorporated (in liquidation); Liquidators (applicants): Christine Margaret Dunphy & Iain Bruce Shephard; Proposed Recipient (new Trust): Ngāti Mutunga O Wharekauri Iwi Trust; Interested Party / Potential Creditor: Te Runanga O Wharekauri Rekohu Incorporated; Interested Party / Potential Creditor: Golden Seas Ltd & James Pohio Family Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
5 December 2011
Procedural Posture
Application for Directions Under S27 Charitable Trusts Act 1957 and S27 Incorporated Societies Act 1908 / Oral Judgment on Application for Directions in Liquidation
Outcome
Application granted: court approves distribution of surplus assets of the Original Trust and the Society to Ngāti Mutunga O Wharekauri Iwi Trust under s27 of the respective Acts, subject to creditors' claims and the court timetable.
Legal Topics
Distribution of Surplus Assets, Cy Pres Doctrine, Winding Up, Liquidators' Duties, Standing/mandate Disputes
Charities Law Trust Law Insolvency Incorporated Societies Law Distribution of Surplus Assets Cy Pres Doctrine Winding Up Liquidators' Duties +1 more

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Parties

Ngati Mutunga O Wharekauri Trust (in liquidation)

Original Trust in Liquidation

Ngati Mutunga O Wharekauri Incorporated (in liquidation)

Society in Liquidation

Christine Margaret Dunphy & Iain Bruce Shephard

Liquidators (applicants)

Ngāti Mutunga O Wharekauri Iwi Trust

Proposed Recipient (new Trust)

Te Runanga O Wharekauri Rekohu Incorporated

Interested Party / Potential Creditor

Golden Seas Ltd & James Pohio Family Trust

Interested Party / Potential Creditor

Procedural Posture

Application for Directions Under S27 Charitable Trusts Act 1957 and S27 Incorporated Societies Act 1908 / Oral Judgment on Application for Directions in Liquidation

Legal Issues

  1. 1 Whether surplus assets of the Original Trust and the Society can be distributed under s27 to the New Trust
  2. 2 Whether the New Trust's objects are as nearly consistent as possible with the original entities (cy-pres)
  3. 3 Whether distributions should be restrained pending resolution of creditors' claims

Ratio Decidendi

The Court approved distribution under s27 to the Ngāti Mutunga O Wharekauri Iwi Trust because the New Trust's objects were as nearly consistent as possible with the original trust and society, there was no identified alternative recipient and statutory and advertising requirements were satisfied; distribution is subject to prudent preservation for and resolution of creditors' claims according to the directed timetable.

Court Disposition

Application granted: court approves distribution of surplus assets of the Original Trust and the Society to Ngāti Mutunga O Wharekauri Iwi Trust under s27 of the respective Acts, subject to creditors' claims and the court timetable.

Orders

  • Order approving distribution of surplus assets of Ngati Mutunga O Wharekauri Trust (in liquidation) to Ngāti Mutunga O Wharekauri Iwi Trust under s27 Charitable Trusts Act 1957
  • Order approving distribution of surplus assets of Ngati Mutunga O Wharekauri Incorporated (in liquidation) to Ngāti Mutunga O Wharekauri Iwi Trust under s27 Incorporated Societies Act 1908