Wood v Prisoners Aid and Rehabilitation Trust

[2014] NZHC 1077

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

CIV 2014-485-4288 [2014] NZHC 1077

IN THE MATTER OF	the Charitable Trust Act 1957
IN THE MATTER OF	a charitable trust established by deed dated 12 July 2010 constituting the Prisoners Aid and Rehabilitation Trust
BETWEEN	SUSANNE MARY WOOD Plaintiff
AND	PRISONERS AID AND REHABILITATION TRUST Defendant

Hearing:	20 May 2014
Counsel:	D McLay for the Plaintiff No appearance for the Defendant
Judgment:	21 May 2014

JUDGMENT OF MALLON J

[1]      The  Prisoners  Aid  and  Rehabilitation  Trust  (“the  Trust  Board”)  was incorporated under the Charitable Trusts Act 1957 and is registered as a Charitable Trust Board. At a meeting of the Trust Board on 20 January 2014 the board resolved to cease trading on 31 January 2014, to apply to the Court for the Official Assignee to be appointed liquidator, and to authorise the plaintiff, who is the chair of the Trust Board, to prepare and sign the necessary documents for this action.

[2]      Pursuant to that authorisation the plaintiff applies for an order putting the Trust Board into liquidation and that the Official Assignee be appointed as liquidator. The reason for the application is the financial position of the Trust Board.  In 2013 it became  apparent  to  the  board  that  it  had  a  deficiency  in  income  relative  to

expenditure.  After full consideration and taking professional advice it reached the

WOOD v PRISONERS AID AND REHABILITATION TRUST [2014] NZHC 1077 [21 May 2014]

view that that most appropriate course was to cease to operate.   The Trust Board discussed that position with the Department of Corrections, its primary stakeholder. As a result of that discussion the Trust Board did not cease to operate immediately, so as to ensure that services it provided to prisoners would continue in the short term and alternative arrangements could be considered by the Department.   The Trust Board and the Department agreed that the Trust Board’s services would continue until 31 January 2014.  The present position, as set out in a balance sheet dated 30

November 2013, is that there is a small surplus of assets over liabilities.  However this is not a final balance sheet and there may be further creditors who are yet to submit invoices.

[3]      The application has been advertised.   No party has filed any defence or opposition or appeared in opposition to the application at the hearing.  The evidence is that liquidation has been carefully considered as the appropriate course in light of the financial position.  I am satisfied that it is just and equitable that the Trust Board be put into liquidation.1

[4]      Accordingly the defendant Trust Board is put into liquidation as at 10.17 am on 20 May 2014 and the Official Assignee is appointed to act as liquidator.   The Official Assignee should note that, although the registered office of the defendant is in   Wellington,   the   records   of   the   defendant   are   principally   maintained   in Christchurch.

Mallon J

1      Charitable Trusts Act 1957, s 25.