Clarification regarding blue pencil

The recent decision in Canterbury Development Corporation & Ors v Charities Commission (see cch.co.nz) provides a useful consideration of the “blue pencil” provisions in s. 61B of the Charitable Trusts Act 1957.  Essentially s. 61B can be used to delete provisions of a trust that invalidate a charitable purpose.  However,  although the section refers to a “trust”, the High Court has interpreted the legislation broadly and to be read as referring to a charitable entity rather than to be limited to a charitable trust.  Although this decision did not assist the appellant in this case, it provides a useful clarification regarding the scope and limitations of s.61B .

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