New Zealand Legislation: Bills

24 Schedule 1 amended

• (1) Clause 1 of Schedule 1 is amended by repealing subclause (1) and substituting the following subclause:

  • “(1) The objective of this schedule is to ensure that businesses referred to in section 17D operate at arm’s-length.”

  (2) Clause 2 of Schedule 1 is amended by repealing the heading above rule 7 and rules 7 to 9 and substituting the following headings and rules:

  “At least 1 independent director

  “7

  • “At least 1 director of business A must—

    • “(a) be neither a director nor a manager of business B; and

    • “(b) not be an associate of business B, other than by virtue of being a director of business A.

  “No cross-directors who are executive directors

  “8

  • “A director of business A may be a director of business B, but must not—

    • “(a) manage business B on a day-to-day basis; or

    • “(b) be an associate of business B, other than by virtue of being a director of business A or business B; or

    • “(c) be involved in business B (other than by having material influence over business B by virtue of being a director of business B).

  “Separate management rule

  “9

  • “(1)   This clause applies if business A is involved in—

    • “(a) more than 30 MW (determined according to nameplate or nameplates) of connected generation (including any connected generation referred to in section 17B and any generation that the Commission has determined under section 17C(2) should be treated as being within the local network area); or

    • “(b) selling more than 262 800 MWh (which is 30 MW operated at 24 hours for 365 days per annum) of qualifying generation to connected customers.

    • “(2) A manager of business A must not—

    • “(a) be a manager of business B; or

    • “(b) be an associate of business B, other than by virtue of being a manager of business A; or

    • “(c) be involved in the business of business B.”

  (3) Clause 2 of Schedule 1 is amended by inserting the heading “Managers must not be placed under certain obligations” above rule 10(1).

  (4) Rule 10(2) of clause 2 of Schedule 1 is amended by inserting “, or a cross-director or a cross-manager,” after “common parent”.

  (5) Rule 11 of clause 2 of Schedule 1 is amended by adding the following subclauses as subclauses (2) and (3):

  • “(2) This rule does not prevent cross-directors under rule 8 from having access to normal board information.

  • “(3) A manager of business A who is not prohibited from being a manager of business B under rule 9 may use restricted information of both business A and business B, but only to the extent that the use does not contravene another of the arm’s-length rules.”

  (6) Clause 5 of Schedule 1 is repealed.