RE McKAY [2023] NZHC 1527

RE McKAY [2023] NZHC 1527

The Court approved the proposed trust deed and ancillary provisions because the scheme satisfied the statutory requirements of s56 (it is proper, lawful, charitable in purpose and compliant with Part 3), the Attorney‑General supported the proposal, and formalisation was necessary to enable effective administration; the Court also ordered that reasonable expenses of the application be paid from the Trust under s52.

Citation
[2023] NZHC 1527
Parties
Applicant and Sole Trustee: Douglas Alexander McKay; Trust: W H Hargreaves Trust
Court
High Court
Jurisdiction
New Zealand
Judgment Date
19 June 2023
Procedural Posture
Application Under Charitable Trusts Act 1957 (parts 3 and 5) / Hearing and Oral Judgment on Application Under S33 and Costs Under S52
Outcome
Application granted
Legal Topics
Variation of Trust Administration, Scheme Approval Under Charitable Trusts Act, Creation and Codification of Trust Deed, Trustee Appointment and Removal, Payment of Legal Expenses From Trust Assets
Charitable Trusts Trusts Law Charities Regulation Variation of Trust Administration Scheme Approval Under Charitable Trusts Act Creation and Codification of Trust Deed Trustee Appointment and Removal Payment of Legal Expenses From Trust Assets

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Parties

Douglas Alexander McKay

Applicant and Sole Trustee

W H Hargreaves Trust

Trust

Procedural Posture

Application Under Charitable Trusts Act 1957 (parts 3 and 5) / Hearing and Oral Judgment on Application Under S33 and Costs Under S52

Legal Issues

  1. 1 Whether the Court should approve a new formal trust deed/scheme under Part 3 of the Charitable Trusts Act 1957
  2. 2 Whether the proposed scheme meets the statutory criteria in s56 of the Charitable Trusts Act 1957
  3. 3 Whether reasonable expenses of the application may be paid from trust assets under s52

Ratio Decidendi

The Court approved the proposed trust deed and ancillary provisions because the scheme satisfied the statutory requirements of s56 (it is proper, lawful, charitable in purpose and compliant with Part 3), the Attorney‑General supported the proposal, and formalisation was necessary to enable effective administration; the Court also ordered that reasonable expenses of the application be paid from the Trust under s52.

Court Disposition

Application granted

Orders

  • Proposed scheme and draft trust deed approved and adopted to formalise and codify the Trust's administration (approved under s53 of the Charitable Trusts Act 1957)
  • Powers for appointment and removal of trustees and for engaging specialist trust advisers approved as in the draft deed