Local Government Act 2002

If you need more information about this Act, please contact the administering agency: Department of Internal Affairs

Council-controlled organisation planning

Heading: replaced, on 22 October 2019, by section 23 of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).

64 Statements of intent for council-controlled organisations

(1)

Every council-controlled organisation must prepare and adopt a statement of intent in accordance with Part 1 of Schedule 8.

(2)

The purpose of a statement of intent is to—

(a)

state publicly the activities and intentions of the council-controlled organisation for the year and the objectives to which those activities will contribute; and

(b)

provide an opportunity for shareholders to influence the direction of the organisation; and

(c)

provide a basis for the accountability of the directors to their shareholders for the performance of the organisation.

(3)

The statement of intent—

(a)

must not be inconsistent with the constitution of the council-controlled organisation; and

(b)

may include and apply to 2 or more related council-controlled organisations.

(4)

Every statement of intent of a council-controlled organisation must comply with Part 2 of Schedule 8.

(5)

Every statement of intent of a council-controlled trading organisation must comply with Part 3 of Schedule 8.

(6)

Every statement of intent of a council-controlled organisation that is not a council-controlled trading organisation must comply with Part 4 of Schedule 8.

(7)

All information that is included in a statement of intent under this section must be prepared in accordance with generally accepted accounting practice if that information is of a form or nature for which generally accepted accounting practice has developed standards.

(8)

Despite this section, an organisation that becomes a council-controlled organisation not more than 6 months before the end of a financial year is not required to prepare a statement of intent for that financial year.

(9)

Each shareholding local authority must publish the adopted statement of intent on an Internet site maintained by or on behalf of the local authority within 1 month of adopting it, and must maintain the statement on that site for a period of no less than 7 years.

(10)

A failure by a council-controlled organisation to comply with any requirement of this section, or with any statement in the organisation’s statement of intent, does not affect the validity or enforceability of any deed, agreement, right, or obligation entered into, obtained, or incurred by that organisation.

Section 64: replaced, on 22 October 2019, by section 23 of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).