Renovate or sell: a decision splitting trustees of Auckland’s North Shore Bread of Life Christian Church, currently occupying a two storey commercial building purchased with adherents donations of over $1.5 million. Refusing to intervene, the High Court ruled this is a commercial decision.
The building on Apollo Drive in Rosedale was purchased some eight years ago after nearly two decades of fundraising. Intent was to renovate the building, creating an auditorium accommodating three hundred worshippers.
The High Court was told initial plans proved unworkable: in part because of cost; in part because of economic consequences following covid-19 pandemic lockdowns.
The six person board of trustees is split 50/50 over future plans.
Trust rules allow the chair to exercise a casting vote. The two factions dispute who has been validly appointed as chair.
Each faction has legal action underway seeking to remove members of the other faction from the board of trustees.
The rift is compounded by the current pastor’s employment status. Pastor Chen is one of the trustees. There is an ongoing employment dispute over his position and his remuneration.
One faction, including Pastor Chen, want to see the building sold, or at least fully leased to a commercial tenant, with the proceeds used to lease a new building for Church activities.
The original purchase was funded, in part, by mortgage. Donations from Church members are paying down this mortgage. They question why their donations, intended to have their Church have ownership of its own land and buildings, should now be used to fund a business leasing commercial properties.
Being part of the second faction, they want to see the building retained, with a scaled down version of initial renovation plans, accommodating a smaller congregation. Building consents have been obtained.
Differences are so entrenched that the two factions now hold separate church meetings.
Membership has declined.
With trustees deadlocked, the faction in favour of renovation asked the High Court give Trust Act approval for work to proceed.
Justice Anderson declined their application. The Church is in a poor financial position, she said. It is for trustees to make a commercial decision about the viability of their various options.
Justice Anderson was told trustees collectively have considered bringing in an independent advisor to assist.
Huang v. Chen – High Court (30.04.25)
25.111