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Charitable Trusts Act 1957

Incorporation of trust boards

25: Liquidation of a board by court

You could also call this:

“A court can decide to close down a board if it's fair”

A court can decide to put a board into liquidation if it thinks it’s fair and right to do so. This means a person called a liquidator will be appointed to manage the board’s affairs and close it down.

Different people can ask the court to liquidate a board. These include the Attorney-General, the board itself, a board member, someone the board owes money to, the Registrar, or anyone else the court thinks should be able to ask.

If the Attorney-General or Registrar asks for the liquidation, they usually get paid back first from the board’s money, unless the court says otherwise.

The process of liquidating a board is similar to how companies are liquidated. The court will follow the rules set out in the Companies Act 1993, but they might change these rules a bit to fit the situation with the board.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM309944.

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Part 2 Incorporation of trust boards

25Liquidation of a board by court

  1. A board may be put into liquidation by the appointment by the court as liquidator of a named person or an Official Assignee for a named district if the court is satisfied that it is just and equitable that the board should be put into liquidation.

  2. Any application to the court to put a board into liquidation may be presented by—

  3. the Attorney-General; or
    1. the board; or
      1. a member; or
        1. a creditor; or
          1. the Registrar; or
            1. any other person who, in the opinion of the court, should make the application.

              1. All costs incurred by the Attorney-General or the Registrar in making the application shall, unless the court otherwise orders, be a first charge on the assets of the board.

              2. Subject to this Act and to any regulations made under this Act, Parts 16 and 17 of the Companies Act 1993 shall apply, with such modifications as may be necessary,—

              3. to the application for the appointment of a liquidator as if the application was an application under section 241(2)(c) of that Act; and
                1. to the liquidation as if the liquidator had been appointed under section 241(2)(c) of that Act.

                  Notes
                  • Section 25: replaced, on , by section 2 of the Charitable Trusts Amendment Act 1993 (1993 No 112).