Nelson Historic Theatre Trust Board

The Nelson Historic Theatre Trust Board applied to the High Court for its consent to the transfer of the Nelson Theatre Royal to the Nelson City Council. The Trust, which owns the Theatre, is struggling financially and believes that transferring ownership to the Council is the best way to ensure the Theatre's future viability and the continued fulfilment of the Trust's objects. The Court was required to determine whether the transfer required its consent under the Charitable Trusts Act 1957 and whether, if so, the transfer should be approved. The Court found that the Theatre was the "essence of the trust" and that its disposal was properly subject to Court scrutiny. The Court also found that the proposed sale to the Council was the best way to honour the spirit and intention of the Trust given the Trust's financial difficulties and the lack of alternative funding options. The Court concluded that the proposed sale was proper and granted the Trust's application for consent. The Court ordered that the Trust could transfer the Theatre to the Council, subject to certain conditions including the Council taking on the Trust's outstanding debt of $2.1 million. The Court also ordered that the Theatre building would continue to be protected as a heritage building and that it would be added to the Council's list of strategic assets.