With beneficial owners kept in the dark about land development proposals, together with trustees’ failure to hold regular annual meetings, their failure to prepare annual financial statements and failure to comply with a court order to elect a further trustee, the Maori Land Court ordered current trustees of a Taupo’s Rangatira E land trust stand down from office.
Allan Sycamore, one of Rangatira E Development Trust’s 3500 beneficial owners, called current trustees to account. He controls a 0.96 per cent beneficial interest.
Rangatira E owns 994 hectares of Maori land off Acacia Bay Road in Taupo. The land has substantial commercial potential.
The four current trustees have been in office for some time: James Alexander Wilson (since 1982), Reima Hall (1999), Susan Smith (2003) and Gloria McLaughlin (2004).
The Maori Land Court was told a trust requirement for annual meetings had been ignored, with trustees holding just four annual beneficiary meetings in the last fourteen years.
Until prodded by the court, no financial statements had been produced since 2018. Subsequently, annual financial reporting was brought up to date.
Judge Coxhead commented that while the Trust has been operating well, and trustees have not been dilatory in paying themselves remuneration, there had been a complete failure to properly report on a regular basis to beneficiaries.
Some beneficiaries complain they are being kept in the dark about the outcome of negotiations with Taupo Council about future development of their land.
Evidence was given of some Trust activities being contracted out to a company owned by trustee Gloria McLaughlin; the company receiving payments totalling more than $70,000 in the 2021 financial year.
Rangatira E must have five trustees, according to its trust deed. The four current trustees were criticised for not taking steps to have a replacement trustee elected following a 2019 death of the then fifth trustee.
To ensure a much-needed beneficiary meeting is held, Judge Coxhead deputised court staff to arrange an annual meeting of Rangatira E beneficiaries, to be held within the next four months.
Current trustees are to stand down at that meeting, he ruled. They may stand for re-election.
Trustees are not to finalise any agreements with Taupo Council prior to this meeting, Judge Coxhead said.
Sycamore v. Rangatira E Development Trust – Maori Land Court (2.04.25)
25.100