Apirana Henderson was removed as trustee of a Hicks Bay ahu whenua trust on complaints from a fellow trustee that Mr Henderson had wrongly taken control of trust assets; giving himself an all-expenses paid place to live, with the trust in addition giving him sundry cash handouts.
Mr Henderson showed a complete failure to understand obligations of a trustee, with a series of blatant and repeated breaches of trustee duties, the Court of Appeal said.
Leaving him as trustee risked one family locking up control of trust assets against the interests of its 364 hapu-related beneficial owners, the court said.
The court dismissed claims by Mr Henderson that his actions were an honourable application of tikanga Maori in which rangatira were expected to have close oversight of communal assets. Instead, trust law principles which prohibit self-dealing by trustees are paramount, the court ruled.
The Wharekahika A47 Trust owns nearly 1200 hectares of Maori freehold land near Hicks Bay on North Island’s East Coast. With six trustees, it operates as an ahu whenua land-based trust under the Te Ture Whenua Maori Act. Designed to better facilitate administration of communally-owned assets, the Maori Land Court appoints ahu whenua trustees and supervises trust operations.
Trustee Ashley Brooking challenged a series of deals which benefitted fellow trustee, Apirana Henderson.
In 2018, Mr Henderson promoted an arrangement in which the trust paid him $10,000; a supposed reward for his efforts in removing a long-term lessee from trust land and time spent making good on deferred maintenance. A further payment of $5000 followed three years later.
In 2019, he had four trustees, including himself, sign authorisation for him to occupy a house on trust land with the trust to pay rates, petrol, internet, power and mobile phone charges.
Mr Brooking complained that this informal approval amounted to approval given by Mr Henderson himself and by two of his siblings who are also trustees.
In addition, a loosely worded ‘proposal,’ set out future payments for various work including stock management and fencing. There was no commitment to actually do any of this work.
The court was told Mr Henderson did not get formal approval from all trustees, or approval from trust beneficiaries, for these self-interested deals.
Warned by trust lawyers of the potential consequences of trustee self-dealing, Mr Henderson chose to repay that part of an insurance premium paid by the trust which provided insurance cover for his own personal assets.
A 2022 Maori Land Court hearing saw Mr Henderson removed as trustee on grounds he had improperly used trustee powers for his own personal benefit. This decision was confirmed by the Court of Appeal.
It is not a question of the court simply exercising a discretion to remove an ahu whenua trustee, the Court of Appeal said. When poor behaviour by a trustee reaches a certain threshold, removal follows automatically, it ruled.
Mr Henderson’s rights to any payment for his services required him first to negotiate a contract of employment with the trust, the Court of Appeal said. Agreed payments then would be validly received as an employee; rather than wrongly taken as a trustee.
The Court of Appeal pointed out that the Maori Land Court had suggested, when removing Mr Henderson as trustee, that he then be offered a five year management contract.
This was not to Mr Henderson’s liking. He chose to appeal, unsuccessfully challenging the court’s power to dismiss him as trustee.
Henderson v. Brooking – Court of Appeal (28.07.25)
25.169