Charitable Trusts Act 1957

Incorporation of trust boards

21: Powers in respect of property

You could also call this:

"How a board can use, sell, swap, or buy property"

A board can do several things with its property, even if there are trusts affecting it. With the court's permission, you can use all or part of the property for any public purpose. You can also sell or swap any part of the property if you think it's a good idea. However, if a trust says you must use a specific property for a certain purpose, you need the court's approval to sell or swap it.

You can buy property in New Zealand or elsewhere using money the board holds. Any property you buy this way will be subject to the same trusts as the money used to buy it. If you sell, swap, or use property for a public purpose, any money or property you get in return will be subject to the same trusts as the original property. You can invest this money according to the Trusts Act 2019.

These powers are in addition to any other powers the board may have under the Trusts Act 2019, this Act, or any other law.

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This page was last updated on 15 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM309939.

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20: Presumption of validity of acts of trustees, etc, or

"Trustees' actions are usually considered okay, even if there were mistakes in how they were chosen"

22: Power to incorporate for charitable purposes under other Acts, or

"You can still create charitable groups using other laws, but not if you've already done it under this law."

Part 2Incorporation of trust boards

21Powers in respect of property

Without restricting the powers that are or may be conferred on any board by or under the Trusts Act 2019 or this Act or any other Act or otherwise howsoever, it is hereby declared that any board may,—
notwithstanding any trusts that may affect its property, with the consent of the court, dedicate all or any part of its property for any public purpose:
notwithstanding any trusts that may affect its property, sell or exchange any part of its property for any purpose upon such terms as it deems expedient:provided that no property subject to any trust shall be sold or exchanged in exercise of the power conferred by this paragraph without the consent of the court in any case where it is of the essence of the trust that the particular property should be used for the purpose of the trust:
subject to the rules or other documents providing for the constitution of the board, purchase any property, whether situated in New Zealand or elsewhere, and apply any money for the time being held by the board for or towards any such purpose; and any property so purchased shall be held upon the same trusts as affected the money applied in payment for the property.

Any money or other property received in consequence of any such dedication or sale or exchange shall be held upon the same trusts as affected the property so dealt with, and any such money may be invested in accordance with the Trusts Act 2019.

Compare

1908 No 164 s 13
1928 No 55 s 2

Notes

Section 21(1): amended, on 30 January 2021, by section 161 of the Trusts Act 2019 (2019 No 38).
Section 21(2): amended, on 30 January 2021, by section 161 of the Trusts Act 2019 (2019 No 38).