Sham trust to privatization!

Apparently a trust would typically have at least one, if not more, independent trustee in order to avoid suggestions of the settlor maintaining control over properties gifted/sold to the trust, which would result in the trust be deemed a “sham” trust and invalidated by the Inland Revenue Department (IRD).


With the current trustees and the apparent way the trust has operated, both the Tutamoe Community Trust and Tutamoe Hall Association Inc. could be seen as a sham!


We could assume a lot of things with these trustees. When you consider that lack of communication to any valid 'member' of either trust; see Tutamoe Community #12 of the Trust Deed, Membership of the trust. It is like they were trying to close both down and make them look like they were no longer able to be operated as per the Deed of Trust.


Let's surmise for a minute.

The time line so far has been that it was declared by the secretary of the Tutamoe Hall Ass Inc, that there was no community involvement since before 2017/18.

My first question here is, where are the copies of the letters sent out to all 'members'; those being the people in the area who are or could be members for the sake of I'm not normally a betting person,but, I'm pretty sure this was never done!

So, how can they factually state in a Charities Commission return (which is a legal document and supposed to be truthful) that there was no community participation?

And this return was made after a meeting was held to approve the sale of community assets and before any voting or even any meeting with ALL details presented.

5 August 2017 a meeting is had and the sale is approved, price dependent on a valuation!

How can they have approved a sale of community assets when no members have even been asked?!

At this meeting Mr Rutherford offered $100,000 for the Hall & surrounding land, the school builds, pool, school house and surrounding land. $100,000 for ALL this? Come on now, this man claims in multiple news articles that he is an Auckland Property Developer.

The meeting in August 2018 clearly show community interest. This was the first time in several years the community had been involved in any meetings.


If the trustees managed to successfully sell all assets of the Tutamoe Community Trust they could then 'donate' the profit to another trust/non-for profit. This is the only way to disburse funds of the closed Tutamoe Community Trust as per the Deed and has to have approval of the High Court. This is the only way the current Sale & Purchase agreements can be approved but there is a catch on those as well. Case law has ruled that any property in trust, has to have all Trustees signature on it to make it valid or approval of the Governor General must be sought. This is not the case here.

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