(1) Subsections (5) and (6) apply to any decision of an existing local government organisation—
(a) during the transition period; and
(b) that may, directly or because of its consequences,—
(i) significantly prejudice the reorganisation:
(ii) significantly constrain the powers or capacity of the Auckland Council or any subsidiary of the Auckland Council following the reorganisation:
(iii) have a significant negative impact on the assets or liabilities that are transferred to the Auckland Council as a result of the reorganisation.
(2) Without limiting subsection (1), subsections (5) and (6) apply to any decision—
(a) made by an existing local authority and to which subsection (3) applies; or
(b) made by an existing local government organisation other than an existing local authority and to which subsection (4) applies.
(3) This subsection applies to a decision—
(a) in respect of which the Transition Agency has notified the existing local authority under section 20:
(b) to adopt or amend a long-term council community plan or to adopt an annual plan:
(c) to adopt a policy required by the Local Government Act 2002:
(d) that is significantly inconsistent with, or is anticipated to have consequences that will be significantly inconsistent with, any policy or plan adopted by the existing local authority under the Local Government Act 2002:
(e) to set a rate other than in accordance with its long-term council community plan:
(f) to purchase or dispose of assets other than in accordance with its long-term council community plan:
(g) to appoint a chief executive or to modify the terms and conditions on which the chief executive is employed:
(h) to terminate the chief executive's employment:
(i) to enter into any contract (other than a contract that terminates on or before the close of 30 June 2011) the consideration for which is, or is equivalent to, $5,000 or more:
(j) to borrow money for a period that extends beyond 30 June 2011:
(k) to establish, or become a shareholder in, a council-controlled organisation:
(l) to adopt or amend a policy concerning the appointment or remuneration of directors of a council-controlled organisation:
(m) to appoint a person as a director of a council-controlled organisation:
(n) to agree to, or modify, the statement of intent of a council-controlled organisation.
(4) This subsection applies to a decision—
(a) in respect of which the Transition Agency has notified the existing local government organisation under section 20:
(b) to purchase or dispose of an asset, if the purchase or disposal of the asset will have a material impact on the capacity or financial well-being of the organsiation:
(c) to appoint a chief executive, or to appoint any person to a position established only after the commencement of the transition period:
(d) to enter into any contract (other than a contract that terminates on or before the close of 30 June 2011) the consideration for which is, or is equivalent to, $5,000 or more:
(e) to borrow money for a period that extends beyond 30 June 2011.
(5) The chief executive of the existing local government organisation must ensure that the decision has been confirmed in writing by the Transition Agency before implementing the decision.
(6) A decision to which this section applies is void and of no effect until it is confirmed.