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Trusts Act 2019

Appointment and discharge of trustees - Removal of trustee

103: How trustee is removed

You could also call this:

"How to remove a trustee from a trust in New Zealand"

Illustration for Trusts Act 2019

If you have the power to remove a trustee, you can do this in certain ways. You can remove a trustee according to the rules set out in the trust or under section 104 or section 105.

You can exercise the power to remove a trustee on any ground stated in the trust. The power to remove a trustee under section 104 or section 105 applies to any trust, even if the trust does not include a power to remove a trustee.

If a trustee meets a ground for removal that is included in both the trust and section 104(1) or section 105(1), you can choose to remove the trustee under the trust or under section 104 or section 105.

If you remove a trustee under section 104 or section 105, you must follow the procedure set out in sections 106 to 111, which overrides any procedure in the trust.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS76756.

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Part 5Appointment and discharge of trustees
Removal of trustee

103How trustee is removed

  1. A person with the power to remove a trustee,—

  2. under section 92(1)(a), may act to remove a trustee in accordance with either—
    1. a power in the terms of the trust; or
      1. the power to remove a trustee on compulsory grounds under section 104 or on optional grounds under section 105; and
      2. under section 92(1)(b) or (c), may act to remove a trustee in accordance with the power to remove a trustee on compulsory grounds under section 104 or on optional grounds under section 105.

        1. A person exercising a power to remove a trustee under the terms of the trust may exercise that power on the basis of any ground for the removal of a trustee that is stated in the terms of the trust.

        2. The power to remove a trustee under section 104 or 105 is available in respect of any trust regardless of whether the terms of the trust include a power to remove a trustee or any grounds for the removal of a trustee.

        3. If a ground for the removal of a trustee that is included in both the terms of the trust and—

        4. section 104(1) is met in respect of a trustee, the person with the power to remove a trustee must remove the trustee, but may elect to exercise the power—
          1. under the terms of the trust; or
            1. under section 104:
            2. section 105(1) is met in respect of a trustee, the person with the power to remove a trustee may elect to exercise the power to remove the trustee—
              1. under the terms of the trust; or
                1. under section 105.

                2. Sections 106 to 111 (relating to the procedure for the removal of a trustee)—

                3. apply only if the power to remove a trustee is exercised under section 104 or 105; and
                  1. if they do apply, prevail over any procedure in the terms of the trust.