Lions Clubs NSW-ACT Save Sight and Health Care Limited v Attorney General of NSW

In this matter, Lions Clubs NSW-ACT Save Sight and Health Care Limited, acting as the trustee of two charitable trusts, challenged the Attorney General of New South Wales over the administration of these trusts. The trusts were established with the primary purpose of providing medical care and treatment to people with glaucoma. The case raised questions about the effectiveness of having a common trustee for both trusts and the validity of a proposed scheme to transfer the trust property to a new trust under a new trustee. The central issue before the court was whether the proposed scheme constituted a cy près or administrative scheme, given the ineffectiveness of the common trustee arrangement.

The court had to determine whether the proposed scheme of arrangement for transferring the trust property to a new trust was valid. Specifically, it needed to decide if the scheme was an administrative one, which would require the consent of the Attorney General, or a cy près scheme, which would not. The court considered the nature of the proposed scheme, the intentions of the settlors, and the legal requirements for such transfers. The court examined whether the scheme was a genuine attempt to continue the charitable purposes of the original trusts or if it amounted to a deviation from those purposes.

The court concluded that the proposed scheme was an administrative one, not a cy près scheme. This was because the scheme aimed to address the administrative issues arising from the ineffective common trustee arrangement, rather than a deviation from the original charitable purposes. The court found that the scheme was designed to ensure the continuation of the charitable activities, which aligned with the intentions of the settlors. Therefore, the consent of the Attorney General was required for the scheme to proceed. The court's reasoning focused on the preservation of the charitable purposes and the administrative necessity of the proposed changes.

The court's decision validated the proposed scheme as an administrative one, necessitating the Attorney General's consent. The court provided clarity on the nature of the scheme and the legal requirements for such arrangements, ensuring that the charitable purposes would continue to be fulfilled. The final orders would likely involve the court granting the necessary consent for the scheme to proceed, thereby allowing the new trust to be established and the new trustee to be appointed.