12 Status and powers

(1)

A local authority is a body corporate with perpetual succession.

(2)

For the purposes of performing its role, a local authority has—

(a)

full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction; and

(b)

for the purposes of paragraph (a), full rights, powers, and privileges.

(3)

Subsection (2) is subject to this Act, any other enactment, and the general law.

(4)

A territorial authority must exercise its powers under this section wholly or principally for the benefit of its district.

(5)

A regional council must exercise its powers under this section wholly or principally for the benefit of all or a significant part of its region, and not for the benefit of a single district.

(6)

Subsections (4) and (5) do not—

(a)

prevent 2 or more local authorities engaging in a joint undertaking, a joint activity, or a co-operative activity; or

(b)

prevent a transfer of responsibility from one local authority to another in accordance with this Act; or

(c)

restrict the activities of a council-controlled organisation; or

(d)

prevent a local authority from making a donation (whether of money, resources, or otherwise) to another local authority or to a person or organisation outside its district or region or outside New Zealand—

(i)

if the local authority considers, on reasonable grounds, that the donation will benefit its district or region, or the communities within its district or region; or

(ii)

if the local authority considers, on reasonable grounds, that a benefit will be conferred on the local government sector as a whole; or

(iii)

for emergency relief; or

(e)

prevent a local authority from making a donation (whether of money, resources, or otherwise) to a local government body outside New Zealand to enable it to share its experience and expertise with that body.

Section 12(6)(c): amended, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

Section 12(6)(d): added, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).

Section 12(6)(e): added, on 28 June 2006, by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).