Education Act 1989

192 Powers of institutions

• (1) Subject to subsection (2), an institution has—

  • (a) the rights, powers, and privileges of a natural person; and

  • (b) the power to issue debentures; and

  • (c) the power to grant floating charges on the institution's undertaking or property, or any of it; and

  • (d) the power to do any other thing it is authorised to do by this Act, by any other enactment, or by any rule of law.

  (2) None of the rights, powers, or privileges of an institution shall be exercised except for the purpose of performing—

  • (a) functions characteristic of institutions of the class to which the institution belongs; or

  • (aa) in the case of an institution that incorporates another institution or other institutions under section 164(4), functions characteristic of institutions of the class to which the incorporating institution belongs and functions characteristic of institutions of the class or classes to which the incorporated institution or institutions belong; or

  • (b) functions of a kind that, in the opinion of the institution's council,—

    • (i) may conveniently, and without disadvantage to the performance of those characteristic functions, be performed in association with those functions; and

    • (ii) are appropriate for institutions of the class to which the institution belongs or, in the case of an institution that incorporates another institution or other institutions under section 164(4), are appropriate for institutions of the classes represented in the institution.

  (3) Paragraphs (b) to (d) of subsection (1) do not affect the generality of paragraph (a) of that subsection.

  (4) Subject to subsection (5), an institution shall not exercise any of the following powers without the written consent of the Secretary:

  • (a) the power to sell or otherwise dispose of assets or interests in assets:

  • (b) the power to mortgage or otherwise charge assets or interests in assets:

  • (c) the power to grant leases of land or buildings or parts of buildings:

  • (d) the power to borrow, issue debentures, or otherwise raise money.

  (5) Subsection (4) does not prohibit an institution, without the consent of the Secretary, from—

  • (a) selling or otherwise disposing of, or mortgaging or otherwise charging, an asset or an interest in an asset, where the value of the asset or interest does not exceed an amount determined by the Minister or an amount ascertained in accordance with a formula determined by the Minister:

  • (b) granting a lease for a term that does not exceed, and when added to any term for which the lease may be renewed does not exceed, 15 years:

  • (c) borrowing, issuing debentures, or otherwise raising money, where the amount to be borrowed, the amount of the debentures, or the amount to be raised, does not exceed an amount determined by the Minister or ascertained in accordance with a formula determined by the Minister.

  (6) A determination by the Minister under this section may relate to all institutions, institutions of a specified class or description, or a specified institution or institutions, and shall be made after the Minister has consulted the institution or institutions concerned.

  (7) Where the Secretary consents under subsection (4) to the exercise of a power by an institution, the council shall comply with any conditions imposed by the Secretary and shall tell the Secretary when the transaction has been completed and how the proceeds, if any, of the transaction have been dealt with.

  (8) Subject to subsection (11), the powers to grant awards conferred on an institution by this Act or any other enactment—

  • (a) in the case of nationally recognised awards, are subject to any reasonable requirements made by the Qualifications Authority in the performance of its functions under this Act; and

  • (b) in any case, do not extend, without the consent of that Authority, to granting an award that is described as a degree or the description of which includes the words bachelor, master, or doctor.

  (9) Subsection (8)(b) does not apply in relation to the granting of an award by a university.

  (10) Any consent by the Qualifications Authority under subsection (8)(b) may be withdrawn, after consultation with the council of the institution concerned, with effect from a date not earlier than 1 January next following the giving of notice of the withdrawal to that institution.

  (11) Nothing in this Act prevents an institution that was in existence immediately before the commencement of this section—

  • (a) from granting during the 2 years following that commencement an award of a kind or description that the institution, or the governing body of that institution, was entitled to grant immediately before that commencement; or

  • (b) from granting after that period an award to a person in consequence of the person's having completed a programme of study or training that the person commenced to undertake before the end of that period.

  Section 192: added, on 1 January 1991, by section 37 of the Education Amendment Act 1990 (1990 No 60).

  Section 192(2)(aa): inserted, on 23 May 1998, by section 4(1) of the Education Amendment Act 1998 (1998 No 21).

  Section 192(2)(b)(ii): amended, on 23 May 1998, by section 4(2) of the Education Amendment Act 1998 (1998 No 21).

  Section 192(5)(b): amended, on 1 January 2008, by section 24 of the Education (Tertiary Reforms) Amendment Act 2007 (2007 No 106).

  Section 192(11)(b): amended, on 30 August 2011, by section 20 of the Education Amendment Act 2011 (2011 No 66).