Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order brings into force, on 6 September 1999, subsections (1), (2), (3), (4), (5), and (6) of section 4 of the State-Owned Enterprises (Meteorological Service of New Zealand Limited and Vehicle Testing New Zealand Limited) Amendment Act 1999 (“the Amendment Act”).

Subsections (1) and (3) remove Vehicle Testing New Zealand Limited from Schedules 1 and 2 of the State-Owned Enterprises Act 1986 (“the Act”). The effect of omitting Vehicle Testing New Zealand 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 Vehicle Testing New Zealand Limited from Schedule 1 means that the company will no longer be a State enterprise subject to the Act.

However, some provisions of the Act will continue to apply to the company. Subsection (2) of the Amendment Act provides that section 22 of the Act (provisions relating to Ministers' shareholding) continues to apply so long as Ministers of the Crown continue to hold shares in the company.

Also, subsection (4) of the Amendment Act provides that sections 23 to 30 of the Act (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 Vehicle Testing New Zealand Limited continued to be the shareholding Ministers.

Subsection (5) of the Amendment Act 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) of the Amendment Act provides that Minister's holding shares in the company may exercise all the rights and powers of shareholders.