New Zealand Institute for Cancer Research Trust

[2020] NZHC 2600

IN THE HIGH COURT OF NEW ZEALAND DUNEDIN REGISTRY

I TE KŌTI MATUA O AOTEAROA ŌTEPOTI ROHE

CIV-2020-412-000018

[2020] NZHC 2600

BETWEEN

THE NEW ZEALAND INSTITUTE FOR CANCER RESEARCH TRUST

Applicant

Hearing:	On the papers
Counsel:	J W Cowan for the Applicant
Judgment:	2 October 2020

JUDGMENT OF NATION J

[1]                 In March 2020 the Trust filed an application under Part 3, Charitable Trusts Act 1957 for approval of a scheme in respect of a Trust created by deed.

[2]                 In a judgment of 13 August 2020, I approved the amended charitable purpose sought by the Trust but declined approval in relation to three clauses in the proposed amended deed.1 In broad terms, the amendments would have permitted the trustee to wind up the Trust or to bring it to an end through exhausting the capital in the Trust. The particular amendments were not supported by the Attorney-General.

[3]                 In that judgment, I reserved leave to the trustee to make a further application for approval of amended clauses that might meet the concerns raised in relation to the three particular clauses.

1      The New Zealand Institute for Cancer Research [2020] NZHC 2048.

The New Zealand Institute for Cancer Research Trust [2020] NZHC 2600 [2 October 2020]

[4]                 The Court’s concerns have been addressed in a new proposed trust deed for which the Trust seeks approval.

[5]                 The clause providing for the trustee to wind up the Trust is to be deleted. The power to amend the terms of the trust deed is specifically limited so as to ensure the Trust assets cannot be exhausted. There can be no amendment which would allow the Trust to limit the payment of capital to more than five per cent a year.

[6]                 The amended trust deed will permit the trustee to apply capital for the purposes of the Trust but any payment or application of capital in any financial year is to be limited to five per cent of the value of the Trust assets on the balance date immediately prior to the date of the payment or application of capital.

[7]                 The proposed amendments have been submitted to the Attorney-General. The Court has a report confirming the Attorney-General is satisfied the scheme and the deed with the proposed amendments are proper and can be approved by the Court.

[8]                 The Court accordingly approves the scheme as set out in the proposed deed accompanying the memorandum of counsel for the applicant dated 25 September 2020, and makes an order in terms of the draft submitted by counsel to the Court.

Solicitors:

Anderson Lloyd, Dunedin Crown Law, Wellington.