Local Government Act 2002

If you need more information about this Act, please contact the administering agency: Department of Internal Affairs
6 Meaning of council-controlled organisation and council organisation

(1)

In this Act, unless the context otherwise requires,—

council-controlled organisation means a council organisation that is—

(a)

a company—

(i)

in which equity securities carrying 50% or more of the voting rights at a meeting of the shareholders of the company are—

(A)

held by 1 or more local authorities; or

(B)

controlled, directly or indirectly, by 1 or more local authorities; or

(ii)

in which 1 or more local authorities have the right, directly or indirectly, to appoint 50% or more of the directors of the company; or

(b)

an entity in respect of which 1 or more local authorities have, whether or not jointly with other local authorities or persons,—

(i)

control, directly or indirectly, of 50% or more of the votes at any meeting of the members or controlling body of the entity; or

(ii)

the right, directly or indirectly, to appoint 50% or more of the trustees, directors, or managers (however described) of the entity

council-controlled trading organisation means a council-controlled organisation that operates a trading undertaking for the purpose of making a profit

council organisation means—

(a)

a company—

(i)

in which equity securities carrying voting rights at a meeting of the shareholders of the company are—

(A)

held by 1 or more local authorities; or

(B)

controlled, directly or indirectly, by 1 or more local authorities; or

(ii)

in which 1 or more local authorities have the right, directly or indirectly, to appoint 1 or more of the directors (however described) of the company; or

(b)

an entity in respect of which 1 or more local authorities have, whether or not jointly with other local authorities or persons,—

(i)

control, directly or indirectly, of 1 or more of the votes at any meeting of the members or controlling body of the entity; or

(ii)

the right, directly or indirectly, to appoint 1 or more of the trustees, directors, or managers (however described) of the entity.

(2)

For the purposes of subsection (1), entity means any partnership, trust, arrangement for the sharing of profits, union of interest, co-operation, joint venture, or other similar arrangement; but does not include a company, or a committee or joint committee of a local authority.

(3)

If a council organisation is not a company, references in this Act, in relation to the council organisation, to—

(a)

equity securities include any form of voting rights in that organisation; and

(b)

the directors and the board include trustees, managers, or office holders (however described in that organisation); and

(c)

shareholders include any persons with an interest or right in the entity that is comparable to the rights of a shareholder in a company, for example, partners, joint venture partners, members, or other persons holding equity securities in relation to that organisation; and

(d)

the constitution include any rules or other documents constituting that organisation or governing its activities; and

(e)

subsidiaries include any entity that would be a council-controlled organisation if the references to “local authority” or “local authorities” in subsection (1) read “council-controlled organisation” or “council-controlled organisations”.

(4)

The following entities are not council-controlled organisations:

(a)

a body corporate that carries on an electricity business (whether or not that business is its principal or only business) or a trust that is constituted for purposes which include owning or controlling, directly or indirectly, all or part of an electricity company that carries on that business; or

(b)

an energy company within the meaning of the Energy Companies Act 1992; or

(c)

a port company or subsidiary of a port company within the meaning of the Port Companies Act 1988; or

(ca)

a company in which a port company (within the meaning of the Port Companies Act 1988) holds or controls 50% of the shares; or

(d)
[Repealed]

(e)

New Zealand Local Government Association Incorporated; or

(f)

New Zealand Local Government Insurance Corporation Limited and its subsidiaries; or

(g)
[Repealed]

(h)

a company or other organisation (as defined in subsection (2)) of which the New Zealand Local Government Association Incorporated has control directly or indirectly by whatever means; or

(i)

an organisation exempted under section 7.

(5)

In this section, terms not defined in this Act, but defined in the Companies Act 1993, have the same meaning as in that Act.

Compare: 1974 No 66 s 594B

Section 6(1) council-controlled organisation paragraph (b): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(1) council-controlled organisation paragraph (b)(i): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(1) council-controlled organisation paragraph (b)(ii): amended, on 7 July 2004, by section 3(1) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(1) council organisation paragraph (a)(ii): amended, on 7 July 2004, by section 3(2) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(1) council organisation paragraph (b): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(1) council organisation paragraph (b)(i): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(1) council organisation paragraph (b)(ii): amended, on 7 July 2004, by section 3(3) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(2): amended, on 7 July 2004, by section 3(4) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(3)(c): replaced, on 22 October 2019, by section 5 of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).

Section 6(4)(a): substituted, on 1 November 2010, by section 166 of the Electricity Industry Act 2010 (2010 No 116).

Section 6(4)(ca): inserted, on 7 July 2004, by section 3(5) of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).

Section 6(4)(d): repealed, on 1 July 2004, by section 48(1)(b) of the Local Government (Auckland) Amendment Act 2004 (2004 No 57).

Section 6(4)(g): repealed, on 1 July 2012, by section 113(2) of the Local Government (Auckland Transitional Provisions) Act 2010 (2010 No 37).