	Title
1	Short Title
2	Interpretation
	Electric Power Trusts
3	Establishment of Electric Power Trusts
4	Trustees
5	Power of Board to grant money to Electric Power Trust
6	Financial statements
7	Trustees to hold public meeting
8	Matters to be included in trust deed
9	Trust deed not to be inconsistent with provisions of this Act
10	Application of Trustee Act 1956 not affected
	Board’s Successor Company
11	Formation and registration under Companies Act 1955 of Board’s successor company
	Amendments to Principal Act
12	Interpretation
13	New sections substituted
	“10	Constitution of Electric Power Boards
	“10a	Term of office of appointed members
	“10b	Vacation of office
14	Combined districts
15	Disqualification from election or appointment
16	Vacation of office by member
	Auckland Electric Power Board
17	Members of Auckland Electric Power Board
18	Term of office of appointed members
19	Vacation of office
20	Disqualification from election or appointment
21	Vacation of office by member
	Rotorua Area Electricity Authority
22	Rotorua Area Electricity Authority
	Amendments to Electric Power Boards Amendment Act 1989
23	Continuation in office of existing members
	Administrative information

An Act to amend the Electric Power Boards Act 1925

BE IT ENACTED by the Parliament of New Zealand as follows:

1 Short Title

This Act may be cited as the Electric Power Boards Amendment Act 1990, and shall be read together with and deemed part of the Electric Power Boards Act 1925 (hereinafter referred to as the principal Act).

2 Interpretation

In sections 3 to 11 of this Act, “Board” means—

(a)

An Electric Power Board constituted under the principal Act:

(b)

The Auckland Electric Power Board constituted under the Auckland Electric Power Board Act 1978:

(c)

The Rotorua Area Electricity Authority (which was constituted by an Order in Council made on the 9th day of August 1971 and published in the Gazette on the 12th day of August 1971 at page 1586 and which was continued as a body corporate by section 726(3)(b) of the Local Government Act 1974).

Electric Power Trusts

3 Establishment of Electric Power Trusts

(1)

The Minister for State Owned Enterprises may execute, in respect of any Board, a trust deed establishing an Electric Power Trust to acquire shares in the capital of the Board’s successor company to be formed and registered by the Minister for State Owned Enterprises in accordance with section 11 of this Act and for the purposes specified in the trust deed.

(2)

Each Electric Power Trust shall, on its establishment, have a name which associates it with the district of the Board in respect of which it is established and which includes the words “Electric Power Trust”.

(3)

Nothing in subsection (2) of this section shall prevent an Electric Power Trust from changing its name in accordance with the trust deed establishing the Electric Power Trust.

4 Trustees

(1)

The trustees of each Electric Power Trust shall be appointed by the Minister for State Owned Enterprises.

(2)

Subject to subsection (3) of this section, the first trustees of each Electric Power Trust shall,—

(a)

Where the Electric Power Trust is established in respect of an Electric Power Board constituted under the principal Act, comprise or include all the persons who, immediately before their appointment as trustees, were holding office—

(i)

As members of that Board under section 10(1)(a) or section 23 of the principal Act; or

(ii)

As members of that Board continued in office by section 3, or appointed under section 4, of the Electric Power Boards Amendment Act 1989:

(b)

Where the Electric Power Trust is established in respect of the Auckland Electric Power Board, comprise or include all the persons who, immediately before their appointment as trustees, were holding office—

(i)

As members of that Board elected or appointed under Part III or Part IV of the Auckland Electric Power Board Act 1978; or

(ii)

As members of that Board continued in office by section 8, or appointed under section 9, of the Electric Power Boards Amendment Act 1989:

(c)

Where the Electric Power Trust is established in respect of the Rotorua Area Electricity Authority, comprise or include all the persons who, immediately before their appointment as trustees, were holding office—

(i)

As members of that Authority who were representatives of a constituent district of the Rotorua Electric Supply District; or

(ii)

As members of that Authority continued in office by section 3, or appointed under section 4, of the Electric Power Boards Amendment Act 1989 (as applied by section 6 of that Act).

(3)

No person shall be appointed as a trustee of an Electric Power Trust unless that person has informed the Minister for State Owned Enterprises that that person is willing to accept appointment as such a trustee.

5 Power of Board to grant money to Electric Power Trust

Where an Electric Power Trust has been established in respect of any Board, that Board may, out of its funds,—

(a)

Pay the costs of establishing the Electric Power Trust; and

(b)

Pay the costs and expenses incurred by trustees of the Electric Power Trust in the discharge of their duties; and

(c)

Pay remuneration to the trustees of the Electric Power Trust in respect of their attendance at meetings of trustees.

6 Financial statements

(1)

The trustees of every Electric Power Trust shall ensure that full and correct accounts of all the financial transactions of the trust and its assets, liabilities, and funds are kept.

(2)

The trustees of every Electric Power Trust shall, after the end of each financial year, have prepared financial statements including a balance sheet and income and expenditure account and notes thereto, giving a true and fair view of the financial affairs of the trust for the financial year.

(3)

The financial statements shall show separately—

(a)

The names of persons or organisations to whom distributions of income have been made by the Electric Power Trust in that financial year; and

(b)

The amounts distributed.

(4)

The trustees of every Electric Power Trust shall ensure that the financial statements are audited by an auditor appointed in accordance with the trust deed establishing the Electric Power Trust.

7 Trustees to hold public meeting

(1)

The trustees of an Electric Power Trust shall in each year, within 4 months after the end of the financial year of the Electric Power Trust, hold a public meeting in the district of the Board in respect of which the Electric Power Trust was established and shall at that meeting report on the operation of the Trust during the preceding financial year and on the financial statements of the Trust for that year.

(2)

The trustees of an Electric Power Trust shall give not less than 14 days’ notice of the holding of a public meeting under subsection (1) of this section in a principal newspaper or newspapers circulating in the district of the Board in respect of which the Electric Power Trust was established.

8 Matters to be included in trust deed

Every trust deed establishing an Electric Power Trust shall contain provisions—

(a)

Specifying the purposes for which the Electric Power Trust is being established:

(b)

Specifying the persons or classes of persons who are not capable of being appointed or reappointed, or holding office, as a trustee of the Electric Power Trust:

(c)

Specifying the term or the maximum term for which every trustee of the Electric Power Trust may be appointed:

(d)

Specifying circumstances in which a trustee of the Electric Power Trust vacates office:

(e)

Specifying the circumstances in which, and the manner in which, a trustee of the Electric Power Trust may be removed from office:

(f)

For the holding of, and voting at, meetings of trustees and specifying the quorum necessary for the holding of meetings of trustees:

(g)

For the remuneration of trustees:

(h)

Specifying the manner in which a vacancy in the office of trustee shall be filled:

(i)

For the appointment of officers, employees, managers, and agents:

(j)

Specifying the powers of investment of the trustees:

(k)

Specifying the powers of the trustees to expend capital and income of the trust:

(l)

For the keeping of accounts:

(m)

For the appointment of an auditor:

(n)

Requiring the publication in each year of the financial statements prepared under section 6 of this Act and of the auditor’s report on those financial statements:

(o)

Specifying the manner in which the trust deed may be varied:

(p)

Specifying such other matters as the Minister for State Owned Enterprises considers appropriate.

9 Trust deed not to be inconsistent with provisions of this Act

(1)

No provision of a trust deed establishing an Electric Power Trust shall be inconsistent with the provisions of this Act and no trust deed shall be varied in a manner which is inconsistent with the provisions of this Act.

(2)

Any provision of a trust deed establishing an Electric Power Trust which is inconsistent with the provisions of this Act and any variation of a trust deed which is inconsistent with the provisions of this Act shall be unenforceable and of no effect.

10 Application of Trustee Act 1956 not affected

(1)

The Trustee Act 1956 applies to an Electric Power Trust established under this Act.

(2)

Notwithstanding section 2(4) of the Trustee Act 1956, the powers conferred by or under the Trustee Act 1956 on a trustee are in addition to the powers given by this Act and the instrument creating the trust; but the powers conferred on a trustee by the Trustee Act 1956, unless otherwise stated, apply if and so far only as a contrary intention is not expressed in this Act or the instrument creating the trust, and have effect subject to the terms of this Act and that instrument.

Board’s Successor Company

11 Formation and registration under Companies Act 1955 of Board’s successor company

(1)

Notwithstanding anything contained in the Electric Power Boards Act 1925, the Minister for State Owned Enterprises shall, not later than 2 years after the establishment under this Act of an Electric Power Trust in respect of any Board, form and register under the Companies Act 1955, in respect of that Board, a public company limited by shares.

(2)

The principal objective of a company formed and registered under this section shall be to operate a successful business.

(3)

Nothing in section 13(1) of the Companies Act 1955 relating to the minimum number of persons who may form a company shall apply to the formation of a company under this section.

(4)

The Minister for State Owned Enterprises shall, in forming the company, consult with the trustees of the Electric Power Trust.

(5)

The first directors of the company shall be appointed by the Minister for State Owned Enterprises, who, in making the appointment, shall have regard to, out shall not be bound by the recommendations of,—

(a)

The Board; and

(b)

The trustees of the Electric Power Trust.

(6)

Except as provided in this Act, the Companies Act 1955 shall apply to every company formed and registered in accordance with this section except that so far as no person other than the Minister for State Owned Enterprises is a shareholder in the company nothing in the following provisions of the Companies Act 1955 shall apply to the company:

(a)

Section 41, as to carrying on business when the number of members is reduced below the legal minimum:

(b)

Section 217(d), as to winding up by the court when the number of members is reduced below the legal minimum:

(c)

Section 219(a)(i), as to the presentation of a winding up petition by a contributory when the number of members is reduced below the legal minimum.

(7)

The Minister for State Owned Enterprises shall have all such powers as are necessary or desirable for the purpose of forming and registering the company including, without limitation, the power to appoint the first directors of the company and the power to issue and allot shares in the capital of the company to the trustees of the Electric Power Trust.

Amendments to Principal Act

12 Interpretation

(1)

The principal Act is hereby amended by repealing section 2, and substituting the following section:

“2

“(1)

In this Act, unless the context otherwise requires,—

“‘Board’ means an Electric Power Board of an electric power district:

“‘Board’s successor company’, in relation to a Board, means the company formed and registered in respect of that Board in accordance with section 11 of the Electric Power Boards Amendment Act 1990:

“‘Clerk’ means the Clerk of an Electric Power Board constituted under this Act:

“‘Constituent district’ means the whole or any part of a district of a territorial authority situated within an electric power district:

“‘District’ means an electric power district proclaimed by the Governor-General under this Act:

“‘Electric Power Trust’ means an Electric Power Trust established by a trust deed executed under section 3 of the Electric Power Boards Amendment Act 1990:

“‘Electric works’ includes generating works, transmission lines, transformer stations, and all other works authorised to be constructed or carried out under this Act:

“‘Financial year’, in relation to any Board or Electric Power Trust, means a period of 12 months ending on the 31st day of March in any year or such other period of 12 months as the Minister from time to time approves in relation to that Board or Electric Power Trust:

“‘Inland Revenue Acts’ means the Acts specified in the First Schedule to the Inland Revenue Department Act 1974:

“‘Local authority’ means a territorial authority within the meaning of the Local Government Act 1974:

“‘Minister’ means, subject to any enactment, the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act:

“‘Outer area’ means any area or areas beyond the limits of a district, and within which area or areas an Electric Power Board is authorised to supply electric power to consumers:

“‘Prescribed’ means prescribed by this Act or by regulations made under this Act.

“(2)

The term ‘local authority’, as used in the Valuation of Land Act 1951, is hereby extended to include an Electric Power Board.”

(2)

The following enactments are hereby consequentially repealed:

(a)

So much of the First Schedule to the Mining Act 1971 as relates to the principal Act:

(b)

So much of Part III of the Third Schedule to the Local Government Amendment Act 1979 as relates to section 2(1) of the principal Act:

(c)

So much of the First Schedule to the Local Government Amendment Act 1986 as relates to section 2(1) of the principal Act:

(d)

So much of the First Schedule to the Ministry of Energy (Abolition) Act 1989 as relates to section 2(1) of the principal Act.

13 New sections substituted

The principal Act is hereby amended by repealing section 10, and substituting the following sections:

“10 Constitution of Electric Power Boards

“(1)

Subject to the provisions of this Act and to the provisions of the Electric Power Boards Amendment Act 1989, every Electric Power Board shall consist of—

“(a)

One or more representatives of each of the constituent districts within the electric power district; and

“(b)

One or more persons, being persons who have had commercial experience, to be appointed by the Minister for State Owned Enterprises.

“(2)

Subject to subsection (3) of this section, the number of representatives of each constituent district shall be such as is determined from time to time in each case by the Governor-General by Order in Council, having regard, in such manner as the Governor-General in Council thinks fit,—

“(a)

To the relative populations of the constituent districts; and

“(b)

To the relative values of the rateable property in the constituent districts; and

“(c)

To the amount of rates levied or proposed to be levied in the constituent districts; and

“(d)

To all other relevant considerations.

“(3)

The total number of members of any such Board who hold office under subsection (1)(a) of this section shall in no case be less than 3 or more than 12.

“(4)

Notwithstanding subsections (1) to (3) of this section and notwithstanding anything in the Electric Power Boards Amendment Act 1989, where the first trustees of an Electric Power Trust established in respect of a Board are appointed,—

“(a)

The persons then holding office as members of the Board in their capacity as representatives of constituent districts within the electric power district shall vacate office; and

“(b)

No further persons shall be elected or appointed to that Board as representatives of constituent districts within the electric power board district.

“10a Term of office of appointed members

“(1)

Every member appointed under section 10(1)(b) of this Act shall be appointed for a term not exceeding 3 years.

“(2)

Every member appointed under section 10(1)(b) of this Act shall be eligible for reappointment from time to time.

“(3)

Where the term for which any member has been appointed under section 10(1)(b) of this Act expires, that member, unless sooner vacating or removed from office under section 10b of this Act, shall continue to hold office, by virtue of the appointment for the term that has expired, until—

“(a)

That member is reappointed; or

“(b)

A successor to that member is appointed; or

“(c)

That member is informed in writing by the Minister for State Owned Enterprises that that member is not to be reappointed and that a successor to that member is not to be appointed.

“10b Vacation of office

“(1)

Any member appointed under section 10(1)(b) of this Act may at any time be removed from office by the Minister for State Owned Enterprises for disability, bankruptcy, neglect of duty, or misconduct, proved to the satisfaction of that Minister.

“(2)

Any member appointed under section 10(1)(b) of this Act may at any time resign his or her office by giving written notice to that effect to the Minister for State Owned Enterprises.

“(3)

The powers of the Board shall not be affected by any vacancy in its membership.”

14 Combined districts

Section 11(1) of the principal Act is hereby amended by omitting the words “last preceding section”, and substituting the words “provisions of section 10 of this Act that relate to the representation of constituent districts”.

15 Disqualification from election or appointment

Section 21 of the principal Act (as substituted by section 12 of the Local Government Amendment Act 1986) is hereby amended by adding the following paragraph:

“(d)

Any person who holds office as a trustee of an Electric Power Trust established in respect of the Board.”

16 Vacation of office by member

Section 22 of the principal Act (as substituted by section 12 of the Local Government Amendment Act 1986) is hereby amended by inserting, after subsection (1), the following subsection:

“(1a)

The office of a member shall become vacant if that member is appointed a trustee of an Electric Power Trust established in respect of that Board.”

Auckland Electric Power Board

17 Members of Auckland Electric Power Board

(1)

Notwithstanding anything in section 6 of the Auckland Electric Power Board Act 1978, but subject to the other provisions of that Act and to the provisions of the Electric Power Boards Amendment Act 1989 and to the provisions of this Act, the members of the Auckland Electric Power Board shall consist of—

(a)

Twelve members elected pursuant to Part III of that Act; and

(b)

One or more persons, being persons who have had commercial experience, to be appointed by the Minister for State Owned Enterprises.

(2)

Notwithstanding anything in subsection (1) of this section or in the Auckland Electric Power Board Act 1978 or in the Electric Power Boards Amendment Act 1989, where the first trustees of an Electric Power Trust established in respect of the Auckland Electric Power Board are appointed,—

(a)

The persons then holding office as members of that Board elected or appointed under Part III or Part IV of the Auckland Electric Power Board Act 1978 shall vacate office; and

(b)

No further persons shall be elected or appointed to that Board under Part III or Part IV of the Auckland Electric Power Board Act 1978.

18 Term of office of appointed members

(1)

Every member appointed under section 17(1)(b) of this Act shall be appointed for a term not exceeding 3 years.

(2)

Every member appointed under section 17(1)(b) of this Act shall be eligible for reappointment from time to time.

(3)

Where the term for which any member has been appointed under section 17(1)(b) of this Act expires, that member, unless sooner vacating or removed from office under section 19 of this Act, shall continue to hold office, by virtue of the appointment for the term that has expired, until—

(a)

That member is reappointed; or

(b)

A successor to that member is appointed; or

(c)

That member is informed in writing by the Minister for State Owned Enterprises that that member is not to be reappointed and that a successor to that member is not to be appointed.

19 Vacation of office

(1)

Any member appointed under section 17(1)(b) of this Act may at any time be removed from office by the Minister for State Owned Enterprises for disability, bankruptcy, neglect of duty, or misconduct, proved to the satisfaction of that Minister.

(2)

Any member appointed under section 17(1)(b) of this Act may at any time resign his or her office by giving written notice to that effect to the Minister for State Owned Enterprises.

(3)

The powers of the Auckland Electric Power Board shall not be affected by any vacancy in its membership.

(4)

Nothing in sections 15 and 16 of the Auckland Electric Power Board Act 1978 applies in relation to any member of the Auckland Electric Power Board who is appointed under section 17(1)(b) of this Act.

20 Disqualification from election or appointment

Any person who holds office as a trustee of an Electric Power Trust established in respect of the Auckland Electric Power Board by a trust deed executed under section 3 of this Act shall not be capable of being appointed as a member of that Board.

21 Vacation of office by member

The office of a member of the Auckland Electric Power Board shall become vacant if that member is appointed a trustee of an Electric Power Trust established in respect of that Board by a trust deed executed under section 3 of this Act.

Rotorua Area Electricity Authority

22 Rotorua Area Electricity Authority

Sections 12 to 16 of this Act shall, with all necessary modifications, apply in relation to the Rotorua Area Electricity Authority (which was constituted by an Order in Council made on the 9th day of August 1971 and published in the Gazette on the 12th day of August 1971 at page 1586 and which was continued as a body corporate by section 726(3)(b) of the Local Government Act 1974) as if that Authority were an electric power board constituted under the Electric Power Boards Act 1925.

Amendments to Electric Power Boards Amendment Act 1989

23 Continuation in office of existing members

The Electric Power Boards Amendment Act 1989 is hereby amended by omitting the expression “30th day of June 1991” wherever it appears in that Act and in amendments made by that Act to other Acts, and substituting in each case the expression “30th day of June 1992”.

This Act is administered in the Ministry of Commerce.