27 June 2024

Top Tips for managing your Ahu Whenua Trust

Ahu Whenua Trusts

Ahu Whenua Trusts are trusts set up to manage one or more blocks of Māori land or General land owned by Māori.  The trustees have legal responsibility for the whenua (land) and make decisions about how it is used and who may occupy it, on behalf of the beneficial owners.

Having an ahu whenua trust in place is a great way to bring owners together to make decisions and take positive steps toward developing, utilising or preserving their whenua.  However, managing a trust can be complex and time-consuming and trustees have legal obligations they must comply with.  Our tips for the smooth running of your trust are set out below and include engaging effectively with beneficial owners; managing the administration; and ensuring your trust order is up to date.

Engaging with beneficial owners

Engaging with beneficial owners is essential in guiding the trustees and in developing and pursing a moemoeā (vision) for the whenua.

Holding hui (meetings) is the main engagement tool for trusts and we recommend hui be held regularly, depending on how much mahi (work) the trust undertakes.  A hui will need to be called in accordance with the trust order and trustees should report on the activities of the trust since the last hui was held.  This will include financial reporting, recent projects and any proposed policies.  There should also be opportunity for beneficial owners to raise and discuss issues and any trustee vacancies filled.

We recommend trustees consider additional engagement with beneficial owners, such as via a trust page or website or the issue of a pānui (publication).  The more communication with owners, the more involved and engaged the beneficial owners will feel.  This can aid the smooth running of the trust, as any issues can be raised and addressed regularly before they become more serious.

Managing the administration

It is important that the administration of the trust is managed well, to ensure legal compliance and protect trustees, and provide transparency to beneficial owners to build confidence in the trustees.

Our tips for administration include:

• Trustees should complete trustee training when appointed. Trustee training is available for free through the Māori Land Court.
• Minutes need to be completed for all hui, both beneficial owner hui and trustee hui. The minutes should include an attendance list and clearly record resolutions made and payments approved.
• Financial statements should be prepared to present at AGMs. If the income of the trust is significant, we recommend having them prepared by an accountant.
• Relevant documents should be kept electronically, which can be accessed easily. This includes the trust order, trustee orders, policies, any updates of those documents, financial reports.
• Check the Māori Land Court records periodically for updates to beneficial owners’ list and ask for owners to update their details at all hui. This ensures the widest possible engagement.
• Reasonable queries and requests for information by beneficial owners be dealt with promptly. This maintains confidence in the trustees.

Trust orders

A trust order is required for ahu whenua trusts and sets out the powers and obligations of the trustees.  The trustees must know and follow the trust order and it is important that the trust order is kept up to date and is relevant.  The trust order can explicitly incorporate relevant tikanga to guide both the trustees and owners.

Our tips for updating your trust order include:

• Ensure simple language is used that is easy to understand.
• Update clauses to provide for advances in technology and changes in the law. This keeps the trust order relevant and can help the trust to engage wider and more easily with beneficial owners and reduce administration costs.
• Consider adopting policies to sit alongside the trust order. This is helpful for matters that may not need to be detailed in the trust order but where it is important to have an agreed process.
• Consider weaving tikanga into your trust order where appropriate.

Amendments to the trust order can be made as necessary, although must be supported by the beneficial owners.  A hui should be held to secure approval and notice of such hui should indicate proposed amendments are on the agenda.  Once approved, an application can be made to the Māori Land Court to formally amend the trust order.

Further assistance

Our team is experienced in providing advice and assistance in respect of managing your ahu whenua trust and amending or updating your trust order and policies.  Please get in touch with us for all your needs and we will be happy to assist.