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Charitable Trusts Act 1957

Miscellaneous provisions

61: Alteration of rules of society or corporation not to affect existing trusts

You could also call this:

“Changing an organisation's rules doesn't change how they must use money or property given for charity”

If a company, society, or corporation holds property for a charitable purpose, and this purpose is defined in their rules or documents, they can’t change these rules to alter how the property is used. This is to protect the original purpose of the trust. The only ways they can change the rules are:

  1. If the original trust documents allow for changes
  2. If they get approval under Part 3 or Part 4 of the Charitable Trusts Act
  3. If a court approves the change

This rule helps make sure that charitable trusts keep doing what they were meant to do, even if the organisation running them wants to change its rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM309994.

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Part 5 Miscellaneous provisions

61Alteration of rules of society or corporation not to affect existing trusts

  1. In any case where any company or society or corporation incorporated under this Act or any other Act or otherwise holds any property upon trust for any charitable purpose defined by reference to the rules or other documents constituting the company or society or corporation, no alteration of the said rules or documents shall vary the trusts for the time being affecting any such property, unless the variation is permitted by the instruments creating the trust and defining its purpose or is approved under Part 3 or Part 4 or is otherwise approved by the court.