New Zealand Acts

PUBLIC TRUST ACT 2001 - SECT 86

86 Administration of benefit funds by Public Trust

1 A fund that is raised by public or private subscriptions for the benefit or relief of any person or class of persons may be placed with Public Trust to be administered by Public Trust and invested in the common fund.

2 The following provisions apply to such a fund:

a) Public Trust may recognise as a committee any persons whom it believes—

i) to have organised the appeal for the subscriptions; or

ii) to have been appointed, authorised, or recognised as a committee by a substantial number of the subscribers:

b) after conferring with the committee (if any), Public Trust may apply to the High Court for directions as to the administration of the fund, and for that purpose must submit a scheme of administration:

c) the court may approve the scheme with or without modification as it thinks fit:

d) Public Trust must administer the fund in accordance with the scheme as approved:

e) on the application of the Attorney-General, Public Trust, a member of the committee, or person claiming an interest in the fund, the court may at any time—

i) vary the scheme so far as it relates to the powers of Public Trust in respect of the fund and the mode of administering the fund:

ii) give directions on any point or question relating to the scheme or the fund:

f) Public Trust must obey all such directions:

g) if the fund was raised for the benefit of 2 or more persons, a scheme under this section may provide that the income and capital of the fund, or of any specified part of the fund, may be applied by Public Trust in its discretion for or towards the maintenance or education (including past maintenance or education) or advancement or benefit of—

i) all those persons; or

ii) any 1 or more of them to the exclusion of the others,—

in such shares and proportions and generally in such manner as Public Trust thinks fit. Public Trust may apply money in accordance with such provisions notwithstanding that only 1 of the persons remains alive.

3 If the fund does not exceed $40,000, or such higher amount as is prescribed by regulations,—

a) instead of applying to the High Court for directions as to the administration of the fund, Public Trust may, with the consent of the committee (if any) or the majority of its members, settle a scheme of administration; and

b) the scheme may be incorporated in a declaration of trust by Public Trust, which is to be treated as the settlor of the trust for the purposes of the trust instrument; and

c) any statements or recitals in the trust instrument are sufficient evidence of their truth, and, subject to paragraph (d), the provisions of the declaration of trust are final and binding on all persons, whether or not beneficially interested under the trust; and

d) Public Trust may if it thinks fit, with the consent of all or a majority of the surviving members of the committee (if any) in New Zealand, modify the scheme so far as it relates to Public Trust's powers in respect of the fund and the mode of its administration, and the declaration of trust must be amended accordingly.

Note: 1957 No 36 s 67