What is the minimum age of a trustee?
We often get asked about whether a young person can become a trustee. There are a few points to consider which we are going to go into here. The minimum age of a trustee is 18 years old under the Trusts Act 2019 (Trusts Act) under sections 15 and 20. However, the minimum age of an officer of a charity is 16 years old, as long as one of the trustees of the charity is at least 18 years or older.
How does this work?
An officer in relation to a charitable entity is someone in a position of significant influence over substantial decisions of the entity. It includes trustees of a trust, a member of a board, and a person occupying any other position that allows them to exercise such influence.[1] It also includes a person with powers conferred on them to make decisions which would otherwise fall to trustees, members of the board or the entity’s governing body.
Charities Services has stated that any person under the age of 16 is disqualified from being an officer under section 36B of the Charities Act 2005 (Charities Act). This acknowledges that people of 16 or 17 years of age can partake in charitable work as an officer. Charities are still required to have at least one officer that is 18 years or older as an essential requirement under section 13 of the Charities Act. The difference in age requirements for trusts and charities comes down to the responsibilities in each role, specifically in entering contracts and holding property.[2]
So, where someone of the age of 16 or 17 cannot be a trustee of a trust they may be an officer of a charity if there is at least one officer that is 18 years or older at any given time.
What does this mean for charitable trusts?
Where a charitable organisation wishes to be a charitable trust, the officers all need to be 18 or older to comply with the Trusts Act. If the charity wishes to be an incorporated society, they require one person that is 18 years old or older to be the contact person.
How about for an incorporated society?
Incorporated societies allow under 18-year-olds to be officers provided they are not under the age of 16 years of age.[3] However, the Incorporated Societies Act 2022 requires every society to have at least 1 contact person who is at least 18 years of age.[4]
How about for a charitable company?
The Companies Act 1993 provides that anyone under the age of 18 are disqualified from being a director of a company. The Charities Act 2005 confirms that individuals that are disqualified under the Companies Act are also disqualified from being officers of charitable entities also. This means directors of charitable companies must be 18 years or older.
We have supported many charities and produce lots of free guides such as the Charities in New Zealand Legal Handbook. If you have any further queries please do not hesitate to contact one of our experts at Parry Field Lawyers- stevenmoe@parryfield.com, sophietremewan@parryfield.com, michaelbelay@parryfield.com or annemariemora@parryfield.com
This article is general in nature and is not a substitute for legal advice. You should talk to a lawyer about your specific situation. Reproduction is permitted with prior approval and credit being given back to the source.
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[1] Charities Act 2005, s 4 meaning of “officer”.
[2] Contract and Commercial Law Act 2017, s 86.
[3] Incorporated Societies Act 2022, s 47.
[4] Incorporated Societies Act 2022, s 113-114.
