IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
I TE KŌTI MATUA O AOTEAROA TĀMAKI MAKAURAU ROHE
CIV 2021-404-1550
[2022] NZHC 259
IN THE MATTER OF
AND
An application for directions under s 33 of the Trusts Act 2019 IN THE MATTER OF
An application by THE SAINT JOHN’S COLLEGE TRUST BOARD
Applicant
On the papers Counsel:
B D Gray QC for the applicant
Judgment:
23 February 2022
JUDGMENT OF CAMPBELL J
This judgment was delivered by me on 23 February 2022 at 3:00 pm pursuant to Rule 11.5 of the High Court Rules
Registrar/Deputy Registrar
THE SAINT JOHN’S COLLEGE TRUST BOARD [2022] NZHC 259 [23 February 2022]
Introduction
[1] The Saint John’s College Trust Board (SJC Trust Board) is a charitable trust board incorporated under the Charitable Trusts Act 1967. It administers the assets of the St John’s College trusts, which are held, managed and distributed in accordance with the St John’s College Trusts Act 1972.
[2] The SJC Trust Board applies for directions under s 133 of the Trusts Act 2019. It seeks the Court’s approval of the trustees’ unanimous decision to forgive the Te Aute Trust Board’s (TA Trust Board) $14.85 million debt to the SJC Trust Board.
[3] Both Trust Boards operate under the auspices of the Anglican Church in Aotearoa, New Zealand and Polynesia (Church).
Background
[4] The TA Trust Board supports two Māori-Anglican schools in Hawke’s Bay, being Te Aute College and Hukarere Girls’ College. In 2012, its ability to provide financial support to the two schools became a cause for concern within the Church. The Church, wishing to prevent the schools’ closure, decided that the SJC Trust Board was the appropriate entity within the Church to assist.
[5]Between 2014 and 2020, the SJC Trust Board advanced approximately
$14.85 million to the TA Trust Board. The advances were conditional on members of the SJC Trust Board becoming trustees of the TA Trust Board — a proposal approved by various stakeholders within the Church, including Te Kotahitanga, the General Synod Standing Committee and Te Pīhopatanga o Aotearoa. Accordingly, between three and seven members of the SJC Trust Board were also trustees of the TA Trust Board during the relevant period.
[6] When it resolved to make the advances, the SJC Trust Board anticipated that the TA Trust Board would likely never be able to repay its debt. That prediction proved correct.
[7] The SJC Trust Board now proposes to forgive the TA Trust Board’s debt. On 16 June 2021, it resolved to do so, subject to the Court making orders granting its approval. The Court’s approval is sought “out of an abundance of caution” because the sum at stake is substantial and the SJC Trust Board has identified a possible historical conflict of the trustees’ duties.
[8] The possible conflict arose as a result of the appointment of SJC Trust Board trustees to the TA Trust Board. Those trustees were “dual trustees” in the period in which the…
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