Powers of institutions and councils

282 Powers of institutions

(1)

An institution has—

(a)

the rights, powers, and privileges of a natural person; and

(b)

the power to issue debentures; and

(c)

the power to grant floating charges on the institution’s undertaking or property, or any of it; and

(d)

the power to invest in the financial products of a related entity; and

(e)

the power to do any other thing it is authorised to do by this Act, by any other enactment, or by any rule of law.

(2)

However, none of the rights, powers, or privileges of an institution may be exercised except for the purpose of performing—

(a)

functions characteristic of institutions of the class to which the institution belongs; or

(b)

in the case of an institution that incorporates another institution or other institutions under section 270(4), functions characteristic of institutions of the class to which the incorporating institution belongs and functions characteristic of institutions of the class or classes to which the incorporated institution or institutions belong; or

(c)

functions of a kind that, in the opinion of the institution’s council,—

(i)

may conveniently, and without disadvantage to the performance of those characteristic functions, be performed in association with those functions; and

(ii)

are appropriate for institutions of the class to which the institution belongs or, in the case of an institution that incorporates another institution or other institutions under section 270(4), are appropriate for institutions of the classes represented in the institution.

(3)

Subsection (1)(b) to (e) does not limit subsection (1)(a).

(4)

An institution may not exercise any of the following powers without the written consent of the Secretary:

(a)

the power to sell or otherwise dispose of assets or interests in assets:

(b)

the power to mortgage or otherwise charge assets or interests in assets:

(c)

the power to grant leases of land or buildings or parts of buildings:

(d)

the power to borrow, issue debentures, or otherwise raise money.

(5)

Despite subsection (4), an institution may, without the consent of the Secretary,—

(a)

sell or otherwise dispose of, or mortgage or otherwise charge, an asset or an interest in an asset, where the value of the asset or interest does not exceed an amount determined by the Minister or an amount ascertained in accordance with a formula determined by the Minister:

(b)

grant a lease for a term that does not exceed, and when added to any term for which the lease may be renewed does not exceed, 15 years:

(c)

borrow, issue debentures, or otherwise raise money, where the amount to be borrowed, the amount of the debentures, or the amount to be raised, does not exceed an amount determined by the Minister or ascertained in accordance with a formula determined by the Minister.

(6)

A determination by the Minister under this section may relate to all institutions, institutions of a specified class or description, or a specified institution or institutions, and must be made after the Minister has consulted the institution or institutions concerned.

(7)

If the Secretary consents under subsection (4) to the exercise of a power by an institution, the council must—

(a)

comply with any conditions imposed by the Secretary; and

(b)

advise the Secretary when the transaction has been completed and how the proceeds, if any, of the transaction have been dealt with.

(8)

The powers to grant awards conferred on an institution by this Act or any other enactment,—

(a)

in the case of nationally recognised awards, are subject to any reasonable requirements made by NZQA in the performance of its functions under this Act; and

(b)

in any case, do not extend, without the consent of NZQA, to granting an award that is described as a degree or the description of which includes the word bachelor, master, or doctor.

(9)

Subsection (8)(b) does not apply in relation to the granting of an award by a university.

(10)

Any consent by NZQA under subsection (8)(b) may be withdrawn, after consultation with the council of the institution concerned, with effect from a date no earlier than 1 January next following the giving of notice of the withdrawal to that institution.

Compare: 1989 No 80 s 192