GREENWOOD, DANIELL, MCLENNAN, BEETHAM AND BAUMANN [2016] NZHC 1034

GREENWOOD, DANIELL, MCLENNAN, BEETHAM AND BAUMANN [2016] NZHC 1034

The Court found the proposed amendments to the Trust Deed were within the jurisdiction of ss 32 and 33 CTA and would facilitate administration and the charitable purposes, and therefore approved them; the Court declined to rely on s 33 to approve the related transactions but instead gave directions under s 66 Trustee Act permitting the trustees to enter into the proposed sale, lease and tenancy with Beetham Pastural Ltd and Mr Beetham and to modify those agreements as authorised by the new deed, and directed that the trustees may meet the application and Attorney-General's costs from trust assets.

Citation
[2016] NZHC 1034
Parties
Applicant/trustee: John Paul Greenwood; Applicant/trustee: Garry Edward Daniell; Applicant/trustee: Alistair David McLennan; Applicant/trustee: Ralph William Trevor Beetham; Applicant/trustee: Geraldine Ann Baumann
Court
High Court
Jurisdiction
New Zealand
Judgment Date
19 May 2016
Procedural Posture
Charitable Trusts Application Under Charitable Trusts Act 1957 and Trustee Act 1956 / Final Judgment (high Court)
Outcome
Application granted in part: Court approved proposed amendments to the Trust Deed under ss 32 and 33 Charitable Trusts Act 1957 and granted directions under s 66 Trustee Act 1956 permitting trustees to enter into the proposed sale, lease and tenancy and to modify those agreements; trustees may meet application and...
Legal Topics
Variation of Trust Deed, Scheme Approval, S 32 CTA, S 33 CTA, S 66 Trustee Act, Related Party Transactions, Leases and Sale Agreements, Public Access and Education, Conservation Funding
Charitable Trusts Trusts Trustee Law Property Law Heritage Conservation Law Civil Procedure (high Court Rules) Variation of Trust Deed Scheme Approval +7 more

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Parties

John Paul Greenwood

Applicant/trustee

Garry Edward Daniell

Applicant/trustee

Alistair David McLennan

Applicant/trustee

Ralph William Trevor Beetham

Applicant/trustee

Geraldine Ann Baumann

Applicant/trustee

Procedural Posture

Charitable Trusts Application Under Charitable Trusts Act 1957 and Trustee Act 1956 / Final Judgment (high Court)

Legal Issues

  1. 1 Whether proposed amendments to the Trust Deed are authorised under ss 32 and 33 CTA
  2. 2 Whether the proposed transactions (lease to related company, sale of livestock, residential tenancy) can be approved under s 33 or require directions under s 66 Trustee Act
  3. 3 Whether the proposed scheme remains sufficiently close to the original charitable purpose

Ratio Decidendi

The Court found the proposed amendments to the Trust Deed were within the jurisdiction of ss 32 and 33 CTA and would facilitate administration and the charitable purposes, and therefore approved them; the Court declined to rely on s 33 to approve the related transactions but instead gave directions under s 66 Trustee Act permitting the trustees to enter into the proposed sale, lease and tenancy with Beetham Pastural Ltd and Mr Beetham and to modify those agreements as authorised by the new deed, and directed that the trustees may meet the application and Attorney-General's costs from trust assets.

Court Disposition

Application granted in part: Court approved proposed amendments to the Trust Deed under ss 32 and 33 Charitable Trusts Act 1957 and granted directions under s 66 Trustee Act 1956 permitting trustees to enter into the proposed sale, lease and tenancy and to modify those agreements; trustees may meet application and...

Orders

  • Proposed amendments to the Current Trust Deed approved under ss 32 and 33 Charitable Trusts Act 1957
  • Direction under s 66 Trustee Act 1956 that trustees may enter into the Deed of Lease with Beetham Pastural Ltd, the agreement for sale and purchase of livestock with Beetham Pastural Ltd, and the residential tenancy agreement with Ralph Edward Beetham, and may modify those agreements in accordance with the powers in...