(1) If the Minister considers that either of the grounds in subsection (2) exist exists, the Minister may appoint, on terms and conditions that the Minister thinks fit, the chief executive, another territorial authority, a regional council, or a recognised agency to perform and exercise all or any of a territorial authority's functions, duties, and powers under this Act.
(2) The grounds are that the territorial authority—
(a) has had a reasonable opportunity to address any concerns set out in a final report under section 164 about the territorial authority's performance of all or any of its functions and duties, or the exercise of all or any of its powers, under this Act; and
(b) has not addressed those concerns to the satisfaction of the Minister despite paragraph (a); and
(c) is not able to perform or exercise all or any of its functions, duties, or powers under this Act to the extent that the Minister considers necessary to achieve the purposes of this Act.
(2) The grounds are that—
(a) the territorial authority has had a reasonable opportunity to address any concerns set out in a final report under section 164 about the performance of all or any of its functions and duties, or the exercise of all or any of its powers, under this Act, but has not addressed those concerns to the satisfaction of the Minister; or
(b) the territorial authority is not able to perform or exercise all or any of its functions, duties, or powers under this Act to the extent that the Minister considers necessary to achieve the purposes of this Act.
(3) The Minister must not make an appointment under subsection (1) unless—
(a) the Minister has given the territorial authority concerned at least 20 working days' written notice of his or her intention to do so; and
(b) the chief executive, other territorial authority, regional council, or recognised agency agrees to the appointment in accordance with section 166.
(4) In making an appointment under subsection (1), the Minister must state the functions, duties, or powers, or any of those functions, duties, or powers, that are transferred to the chief executive, other territorial authority, regional council, or recognised agency.
(5) However, the Minister may not transfer a territorial authority's function of a recognised agency, if the territorial authority is so recognised under this Act.