R7.253– KM Christensen and EA Bond Bequest

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Recitals –

1. In March 1998, the Victorian College of the Arts (‘the College’) received $500,000, and in February 2000 a further $23,549.30, pursuant to the will of the late Arthur Edwin Bond who died on 23 January 1984. Under his will, the late AE Bond gave most of his net residuary estate on trust to pay the net income to his partner, Colonel Keith McMillan Christensen, during his life, and from his death:
   
   

   ‘3.…UPON TRUST as to as well the capital as the income of the said residue (but subject to the next succeeding clause) to pay or transfer the same to the VICTORIAN COLLEGE OF THE ARTS of 234 St. Kilda Road Melbourne in the said State to be held by such College as a fund in perpetuity to be known as the “K.M. Christensen and E.A. Bond Bequest” UPON TRUST to invest the same in or upon the security of such investments as may from time to time be determined by the Council of the said College AND to pay or apply the income therefrom or so much thereof as the said Council shall think fit in any one year for the benefit of the School of Dance such income to be used for any one or more of the following purposes namely the purpose of providing incentive to and to promote the attainment of excellence of performance in and appreciation of the art of classical ballet by bringing to Australia guest teachers of and artists in classical ballet of established international repute for the purpose of instructing students of the School of Dance in the art of Dance and/or choreography and/or choreograph works for such students or for use or application in whole or in part in or towards the construction and equipment of a building for use as an adequate and permanent theatre for the production and performance of ballet and/or for the training of students of the School of Dance in the performance and production of classical ballet AND the said Victorian College of the Arts is hereby expressly empowered to accumulate any surplus income accruing in any year or from year to year at compound interest by investing the same and the resulting income as an accretion to the capital of my said residue during such period as may from time to time be permissible by law and with power also to apply such accumulations as if the same were income of the then current year AND I DIRECT that the receipt of the Secretary Treasurer or other proper officer for the time being of the Victorian College of the Arts shall be a good and sufficient discharge to my trustees in respect of the payment over or transfer of the said residue AND that my trustees shall be under no obligation to see to the application of the said residue by the said Victorian College of the Arts in accordance with the trusts hereinbefore contained.

   4. Should the said School of Dance be disbanded or discontinued or should its objects and purposes be altered in such manner that the teaching of the art of classical ballet ceases to be a primary object or purpose of the said School then in that event the trust created by the preceding clause shall cease and determine AND in lieu thereof the capital and income of the said residue and the assets and investments representing the same and all the monies thereof shall be paid over and transferred to the Council of the Trustees of the National Gallery of Victoria….’

2. KM Christensen died on 24 August 1996. Distribution of the residuary estate was delayed as a result of a claim by the National Gallery of Victoria (‘NGV’) which was subsequently withdrawn. The NGV had contested the entitlement of the College on the grounds that teaching of the art of classical ballet had ceased to be a primary object or purpose of the school of Dance at the College.
3. The College established a trust fund with this bequest and has applied the accumulated income from time to time to pay for the cost of visiting choreographers and teachers of classical ballet.
4. At 31 December 2006, the amount of the fund was $806,425.11.
5. As from 1 January 2007, the College ceased to exist and became a faculty of the University pursuant to the Melbourne University (Victorian College of the Arts) Act 2006 (Vic.) (‘the Act’).
6. Pursuant to section 5 of the Act, on and from 1 January 2007:
   
   1. the University became the successor in law of the College;
   2. the assets and rights of the College were vested in the University; and
   3. the liabilities and obligations of the College became liabilities and obligations of the University.
7. Pursuant to section 6 of the Act, the fund may be applied on or after 1 January 2007 as if created in favour of the University for a purpose of the University that corresponds with, or is similar to, those purposes of the College for which the fund was created

It is provided as follows-

1. The sum of $806,425.11, and any accumulations and additions to the sum, forms a fund called the ‘KM Christensen and AE Bond Bequest’(‘the fund’) and the fund must be paid into an investment pool and remain there until Council directs otherwise.
2. The net annual income of the fund may be applied by Council from time to time on the recommendation of the head of the discipline of Dance (‘head of Dance’) at the faculty of the Victorian College of the Arts (‘the faculty’) to pay for any one or more of the following in order to provide incentive to and to promote the attainment of excellence in performance in, and appreciation of, the art of classical ballet:
   
   1. bringing to Australia guest teachers of, and artists in, classical ballet of established international repute for the purpose of instructing students of the discipline of Dance at the faculty in the art of dance and/or choreography and/or of choreographing works for such students; or
   2. for or towards the construction and equipment of a building for use as an adequate and permanent theatre for the production and performance of classical ballet and/or for the training of students of the discipline of Dance at the faculty in the performance and production of classical ballet.
3. Any accumulated net annual income may be retained as income or added to capital. Any accumulated income which has been added to capital and any income derived therefrom may be available for distribution in any year for either of the purposes prescribed in section 2.