High Court approval was given for Anglican St John’s College Trust Board to write off loans totalling $14.85 million made to two Maori-Anglican schools in Hawkes Bay: Te Aute College and Hukarere Girls’ College.
In 2012, St John’s Trust provided financial support to avert the Schools’ closure. Further funds were provided over following years. A total of $14.85 million was advanced by 2020. The schools are managed by the Te Aute Trust Board. It was a condition of the loans that St John’s Trust be represented on the board of Te Aute Trust. It was anticipated that Te Aute Trust would never be in a position to repay.
Legal issues arose when St John’s Trust decided to write off the loans. There was a conflict of interest. Trustees from the St John’s Board who are obliged to look after the interests of St John’s were also sitting on the Te Aute Board which would benefit from any loan write off.
St John’s told the High Court that the three St John’s trustees sitting on the Te Aute Board took no part in the St John’s Trust Board’s vote approving cancellation of Te Aute’s debt. High Court approval was given to the cancellation. The dual trustees did not vote; their abstention avoided a conflict of interest.
St John’s College Trust Board financial statements for the 2020 year record annual net income of $64.7 million, including capital gains of $46 million.
re St John’s College Trust Board – High Court (23.02.22)
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