In the matter of THE NEW ZEALAND GUARDIAN TRUST COMPANY LIMITED [2019] NZHC 2548

In the matter of THE NEW ZEALAND GUARDIAN TRUST COMPANY LIMITED [2019] NZHC 2548

It was expedient to substitute Perpetual Trust Limited for The New Zealand Guardian Trust Company Limited under s51 Trustee Act 1956 and s21 Administration Act 1969 because the substitution is a practical and efficient means of advancing the interests of the trusts and estates and their beneficiaries, will not prejudice beneficiaries or other stakeholders given the like-for-like continuation of services and fee structures, and Guardian provided adequate safeguards (undertakings on legal costs, unchanged indemnity wording, evidence of insurance cover and owner financial support) to address identified concerns; accordingly the Court granted the application and made orders in the terms of...

Citation
[2019] NZHC 2548
Parties
Applicant/statutory Trustee: The New Zealand Guardian Trust Company Limited; Proposed Substituted Trustee/private Trustee: Perpetual Trust Limited; Court Appointed Counsel to Assist the Court: A S Butler
Court
High Court
Jurisdiction
New Zealand
Judgment Date
8 October 2019
Procedural Posture
Application Under Trustee Act 1956 and Administration Act 1969 (substitution of Trustees and Administrators) / Application Decided on the Papers; Judgment on Application for Substitution of Trustees and Administrators
Outcome
Application granted; orders made substituting Perpetual Trust Limited for The New Zealand Guardian Trust Company Limited in respect of private client trusteeships and administrations in terms of the draft orders filed 7 October 2019.
Legal Topics
Substitution of Trustees, Appointment and Removal of Administrators, Expediency Test, Conflict of Interest Management, Professional Indemnity and Solvency, Court Assistance Under S51 Trustee Act and S21 Administration Act
Trusts Law Estates and Administration Company/corporate Law Civil Procedure Substitution of Trustees Appointment and Removal of Administrators Expediency Test Conflict of Interest Management +2 more

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Parties

The New Zealand Guardian Trust Company Limited

Applicant/statutory Trustee

Perpetual Trust Limited

Proposed Substituted Trustee/private Trustee

A S Butler

Court Appointed Counsel to Assist the Court

Procedural Posture

Application Under Trustee Act 1956 and Administration Act 1969 (substitution of Trustees and Administrators) / Application Decided on the Papers; Judgment on Application for Substitution of Trustees and Administrators

Legal Issues

  1. 1 Whether the Court should substitute Perpetual Trust Limited for The New Zealand Guardian Trust Company Limited under s51 Trustee Act 1956 and s21 Administration Act 1969
  2. 2 Whether substitution is expedient and whether the outcome can be achieved without Court assistance
  3. 3 Whether any beneficiaries or other stakeholders will be prejudiced by the substitution

Ratio Decidendi

It was expedient to substitute Perpetual Trust Limited for The New Zealand Guardian Trust Company Limited under s51 Trustee Act 1956 and s21 Administration Act 1969 because the substitution is a practical and efficient means of advancing the interests of the trusts and estates and their beneficiaries, will not prejudice beneficiaries or other stakeholders given the like-for-like continuation of services and fee structures, and Guardian provided adequate safeguards (undertakings on legal costs, unchanged indemnity wording, evidence of insurance cover and owner financial support) to address identified concerns; accordingly the Court granted the application and made orders in the terms of...

Court Disposition

Application granted; orders made substituting Perpetual Trust Limited for The New Zealand Guardian Trust Company Limited in respect of private client trusteeships and administrations in terms of the draft orders filed 7 October 2019.

Orders

  • Perpetual Trust Limited is substituted for The New Zealand Guardian Trust Company Limited as trustee and/or administrator for the private client trusts and estates specified in the application pursuant to s51 Trustee Act 1956 and s21 Administration Act 1969
  • Guardian, Perpetual and/or related entities will meet reasonable legal costs of any settlor, co-trustee, protector or beneficiary who, with Perpetual's prior reasonable consent, seeks legal advice about the effect of the orders and any documents to be signed