1 AUGUST

NEW ZEALAND GAZETTE

2035

Trustees:

Mr J. E. Thompson (Chairperson), Ms R. A. Carruthers, Mr L. K. Cooney, Mr A. R. McKay, Mr P. F. McIlraith, Mrs J. J. Rayne, Mr C. P. Sparrow, Mr J. R. Sutton, M.P., Mr D. B. Timpany and Mr R. J. Underdown.

Bankers:

Trust Bank South Canterbury, 243 Stafford Street, Timaru.

Auditors:

Martin Wakefield, Chartered Accountants, 26 Canon Street, Timaru.

Secretary:

K. A. Churcher, Chartered Accountant, P.O. Box 591, 39 George Street, Timaru.

Trustees’ Report for the Period Ended 31 March 1996

Objectives of the Trust:

The trust’s objectives are to provide financial assistance to organisations carrying on charitable, cultural, philanthropic and recreational work which is of benefit to the community, principally in the regions of South Canterbury and Mid Canterbury.

Policies and Structure of the Trust:

All purposes of the trust are deemed to be charitable, to administer capital and to distribute income for charitable purposes in the Mid and South Canterbury areas.

The community trust now comprises 10 trustees who are representative of the Mid and South Canterbury communities. Trustees are appointed by the Minister of Finance and reside in either Mid or South Canterbury.

Trustees retire by rotation and during the past year the terms of office expired on 31 May 1995 for Messrs R. B. McCully, D. B. Timpany and R. J. Underdown. Messrs D. B. Timpany and R. J. Underdown were reappointed for a further term of 4 years. Mr R. B. McCully was not reappointed reducing the size of the board to 10 trustees. The trustees are grateful to Mr McCully for his valuable contribution to the affairs of the trust during his term of office. He was very much a worthy representative of the Temuka area.

Activities of the Trust:

The past year was once again a busy one for the trustees. Each year many requests are received from a wide variety of community organisations seeking donations. The amounts sought are well in excess of the funds available and trustees spend a considerable amount of time endeavouring to make a fair distribution.

Although it is outside the year under review the fact that the trust did sell its entire shareholding in Trust Bank New Zealand Limited is of current interest and of importance to the area in which we operate. The other 8 community trusts were members of a consortium called Community Trusts Investments Limited and as such held the majority interest in Trust Bank New Zealand Limited. Being the only trust not being a member we attracted much interest from the media at the time when a great deal of speculation was rife both as to the sale and as to who the prospective purchaser was to be. While our trustees had no option but to sell following the majority shareholders’ decision to do so we are in no doubt that as prudent trustees it was in the best interest of the community. The fact that as independent sellers we were successful in obtaining the open market price (average $2.98) as opposed to $2.92 offered by Westpac Banking Corporation gave much satisfaction. We intend to administer this greatly increased capital fund, with expert assistance, to maximise the returns which may then be applied for the benefit of a wide spread of the community organisations.

Review of Results and Financial Position of Trust:

The main income of the trust was received by way of dividends from Trust Bank New Zealand Limited, totalling $1,134,000 and after adding the investment income the total gross income was $1,227,309. The net income (before donations) was $1,161,019. After deducting the donations paid or committed to community groups and also an initial contribution to an endowment fund being set up the surplus transferred to undistributed funds was $590,246.

It is expected that with the increased income which the trust is now receiving that more funds will be available to assist community groups in our area in the future.

J. E. THOMPSON, Chairperson.

Statement of Financial Performance for the Year Ended 31 March 1996