This note is not part of the order, but is intended to indicate its general effect.
This order brings into force, on 24 March 1999, subsections (1), (2), (3), (4), (5), and (6) of section 3 of the State-Owned Enterprises (Contact Energy Limited) Amendment Act 1998.
Subsections (1) and (3) remove Contact Energy Limited from Schedules 1 and 2 of the State-Owned Enterprises Act 1986. The effect of omitting Contact Energy Limited from Schedule 2 means that the company will cease to be subject to Part 2 of the Act, including section 11. Section 11 prevents the Crown from selling or disposing of shares in the company or permitting shares in the company to be allotted to a person other than a shareholding Minister. Removal of Contact Energy Limited from Schedule 1 means that the company will no longer be a State enterprise subject to the Act.
However, some provisions of the State-Owned Enterprises Act 1986 will continue to apply to the company. Subsection (2) provides that section 22 (provisions relating to Minister's shareholding) continues to apply so long as Ministers of the Crown continue to hold shares in the company.
Also, subsection (4) provides that sections 23 to 30 (which include provisions relating to the transfer of assets and liabilities) continues to apply as if the company continued to be a State enterprise and a company named in Schedule 2 of the Act and as if the Minister of Finance and Minister responsible for Contact Energy Limited continued to be the shareholding Ministers.
Subsection (5) provides that subsection (4) applies whether or not all or any of the shares in the company are held by Ministers of the Crown.
Subsection (6) provides that Ministers holding shares in the company may exercise all the rights and powers of shareholders.