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Trusts Act 2019

Court powers and dispute resolution

126: Court may review trustee's act, omission, or decision

You could also call this:

"The court can check if a trustee is being fair and making good decisions."

Illustration for Trusts Act 2019

The court can check if a trustee's action or decision is reasonable. You can ask the court to do this if you are a beneficiary and you think the trustee's action or decision is not fair. The court will follow the rules set out in section 127 when it does the review.

The court already has the power to supervise trusts, and this section does not change that. The court's power includes its ability to supervise trusts under the Charitable Trusts Act 1957.

The Attorney-General also has powers and duties related to charitable trusts under the Charitable Trusts Act 1957, and this section does not affect those powers and duties.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7383053.

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127: Procedure for court’s review of trustee’s act, omission, or decision, or

"How a court checks if a trustee made a fair decision"

Part 7Court powers and dispute resolution

126Court may review trustee's act, omission, or decision

  1. The court may review the act, omission, or decision (including a proposed act, omission, or decision) of a trustee on the ground that the act, omission, or decision was not or is not reasonably open to the trustee in the circumstances.

  2. The court may undertake a review on the application only of a beneficiary.

  3. The review must be conducted in accordance with section 127.

  4. This section and section 127 do not limit or affect—

  5. the court’s jurisdiction to supervise trusts, including its jurisdiction under the Charitable Trusts Act 1957; or
    1. the Attorney-General’s powers and duties with respect to charitable trusts, including powers and duties under the Charitable Trusts Act 1957.