This Act may be cited as the Hamilton City Council (Gas) Empowering Act 1988.

In this Act, unless the context otherwise requires,—

(1) The Council may from time to time, either alone or jointly with any other person or persons,—

• (a) subscribe for, purchase, or otherwise acquire, hold, and sell or dispose of, shares, stocks, or interests, and otherwise participate, in the company:

• (b) exercise all of the rights and powers of the Council as the holder of any shares, stocks, and interests in the company, including any right or power incidental to or necessary for the exercise of any such right or power.

(2) The Council may sell its gas undertaking to the company, whether or not it holds shares, stock, or interests in the company.

(3) In subsection (2), the term gas undertaking includes all assets of the Council's gas undertaking, the underground gas reticulation system, all regulating stations and in-service metering pipes, valves, meters for the distribution of gas, and all stock in trade (including spares), appliances, vehicles, trailers, plant, fittings (other than fixtures) and office equipment, all assets used in or ancillary to its gas undertaking, its franchise held under the Gas Act 1982 and the interest of the Council under the joint venture agreement between the Council and the Huntly Borough Council dated 14 July 1981; but does not include the electricity undertaking of the Council which was amalgamated with the gas undertaking of the Council by the Hamilton City Gasworks and Electricity Empowering Act 1952.

If the Council holds any shares, stock, or interests in the company, the Council may advance money to the company on loan, either secured or unsecured, on such terms and conditions as the Council thinks fit.

The Council may from time to time enter into and execute agreements, contracts, deeds, and other instruments for the purposes of this Act, and do all other things that are reasonably necessary for those purposes.

The powers conferred on the Council by this Act are in addition to any other powers conferred on it by any other enactment.

(1) If the Council holds any shares, stock, or interests in the company, it shall be the duty of the company to cause annual financial statements in respect of its operations to be prepared as soon as practicable after its annual balance date.

(2) The Council shall ensure that, in respect of every contract or arrangement entered into under this Act, annual financial statements are prepared as soon as practicable after the company's annual balance date while the contract or arrangement remains in force.

(3) The financial statements prepared pursuant to subsection (1)—

• (a) shall be audited by the Auditor-General if the company is controlled directly or indirectly by the Council by means of the Council having the right to exercise 50% or more of the voting rights attached to its issued share capital or having the right to control 50% or more of the votes on the appointment of its directors; and

• (b) in any other case, shall be audited by either the Auditor-General or a member of the New Zealand Institute of Chartered Accountants, as the members of the company determine.

(4) The financial statements prepared pursuant to subsection (2) in respect of any contract or arrangement entered into by the Council—

• (a) shall be audited by the Auditor-General if the terms of the contract or arrangement provide that—

  • (i) the combined value of the financial contributions to the company of parties that are local authorities, public bodies, government departments, or the Crown is 50% or more of the total financial contributions of all the parties; or

  • (ii) the combined value of the share of net costs, surpluses, profits, or losses to be taken or borne by the parties that are local authorities, public bodies, government departments, or the Crown is 50% or more of the total net costs, surpluses, profits, or losses, as the case may be; and

• (b) in any other case, shall be audited by either the Auditor-General or a member of the New Zealand Institute of Chartered Accountants as the parties to the contract or arrangement determine.

(5) The financial statements prepared pursuant to this section shall consist of—

• (a) a balance sheet; and

• (b) a statement of profit and loss; and

• (c) such other statements as may be necessary to fairly reflect the financial position of the company and the financial results of its operations during its financial year.

(6) The financial statements, together with any report received from the auditors thereof, shall be produced at a meeting of the Council held not later than 6 months following the close of the financial year to which the statements relate.

(7) Nothing in this Act shall be construed as requiring the inclusion in any financial statements of any information that could reasonably be expected—

• (a) to prejudice significantly the competitive commercial activities of the company; or

• (b) to interfere significantly with contractual or other negotiations related to the competitive commercial activities of the company.

The Huntly Borough Council is hereby empowered to sell, on such terms as it thinks fit, its one-half interest in the joint venture gas undertaking held under an agreement between the Council and the Huntly Borough Council dated 14 July 1981 for the supply of natural gas to consumers in the district of the Huntly Borough Council, including all the underground gas reticulation system, together with all regulating stations and in-service metering, and all the gas general stock in store, and the franchise held in respect of that undertaking under Part 2 of the Gas Act 1982.

The Hamilton City Gasworks and Electricity Empowering Act 1952 is hereby repealed.