Managing a Māori land trust requires trustees to uphold strict duties of care, accountability, and transparency. When trustees fail in these responsibilities, beneficiaries often feel uncertain about what steps they can take. A common question arises: When can the Māori Land Court remove a trustee of a Māori land trust?

In a recent situation, beneficiaries raised concerns after their trustees failed to provide mandatory financial reports and had not even set up a bank account for the trust. These issues prompted the beneficiaries to seek legal advice about whether trustee removal was possible.

Under Section 240(1) of Te Ture Whenua Māori Act 1993, the Māori Land Court may remove a trustee where:

1. The trustee has lost the capacity to perform their duties; or

2. Removal is desirable for the proper functioning of the trust and one of the following criteria is met:

   • The trustee repeatedly refuses or fails to act.

   • The trustee becomes an undischarged bankrupt.

   • A corporate trustee faces an insolvency event.

   • The trustee is no longer suitable to hold office due to conduct or circumstances.

If one of these grounds is satisfied, the Court must then decide whether removal is necessary for the trust to operate properly.

How the Māori Land Court Approaches Removal

Removal is considered a serious action and is not taken lightly. The Court emphasises:

• Trustees must be formally notified of the concerns.

• Minor or technical breaches are not usually enough unless the trust assets are at risk.

• The Court needs evidence of significant misconduct, failure, or wrongdoing.

The Māori Appellate Court has reinforced that the “unsuitability” ground is intentionally broad. Section 240(3) provides examples of unsuitable conduct, but it is not an exhaustive list. The Court must also apply the kaupapa of the Act—protecting, retaining, and developing Māori land for current and future generations.

A trustee’s performance must be assessed against these principles. The Court of Appeal has clarified that removal requires more than mere neglect; the trustee must have failed to perform satisfactorily, particularly where trust assets are endangered. Failing to establish a bank account or provide financial statements is a clear breach that may justify removal.

If you are considering action under section 240, it is important to seek independent legal advice.
➡️ Learn more: Core Legal – Māori Land Trust Assistance
➡️ Book a consultation: Core Legal Initial Consultations

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Frequently Asked Questions

1. Can beneficiaries apply directly to remove a trustee?

Yes. Beneficiaries may apply to the Māori Land Court, but they must provide evidence supporting one of the section 240 grounds.

2. Is poor communication enough to remove a trustee?

Only if it amounts to serious misconduct affecting the trust’s ability to function or putting assets at risk.

3. Do trustees have to provide financial reports?

Yes. Failure to provide accounts or set up proper financial processes can make a trustee unsuitable to remain in office.

4. Do trustees get a chance to defend themselves?

Absolutely. The Court requires they be given notice and an opportunity to respond.

5. Should I get legal advice before applying to remove a trustee?

Yes. Proceedings can be complex, and legal guidance helps ensure the strongest and most accurate application.