Māori Land Trustee removed for failing to act responsibly…

An application has been granted to remove a responsible trustee from a Māori land trust for refusing to complete documentation enabling the trust to open a bank account.

On several occasions the other trustees asked for the trustee to complete bank documentation to which he refused on every occasion. He claims that wider issues with the Trust and the whenua exist and until these are resolved he will not act.

Consideration to both the Kaupapa of the Act and the seriousness of removing a trustee must be given and cannot be taken lightly when making these orders. This is because Tribunals do not like to interfere in private trusts.

However, clear grounds for removal were found by the Tribunal. Failing to have a trust bank account means the Trust cannot use funds for trust purposes or make distributions to beneficiaries. Denying the trust access to a bank account is breaching the trustees’ obligations under the terms of the trust by failing to act for the benefit of the beneficiaries.

Refusing to set up the account stalls the ability for the trust to operate financially. No connection exists between his reasoning and the establishment of the bank account. The historical issues claimed by the trustee do not have any direct impact on the ability to complete the bank forms. It was unacceptable for a trustee to allow his personal actions to affect the operation of the trust.

Lastly, the preamble of the Act speaks of rangatiratanga, whenua as a taonga tuku iho, and facilitating the occupation, development, and utilisation of whenua for the benefit of its owners, their whānau, and their hapū.

This is clearly undermined by the trustee’s lack of action.

Grounds for removal were found and held to be desirable for the proper execution of the trust.

Removal of the trustee ensured that the trustees’ obligations can be complied with and proper execution of the trust can be carried out.

The case highlights the need for trustees to comply with their duties.

Being certain of what your duties are and distinguishing between acting in a personal capacity as opposed to your responsibility as a trustee can ensure the trust functions as it should.   

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