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Local Government Act 2002

Council-controlled organisations and council organisations - Directors

59: Principal objective of council-controlled organisation

You could also call this:

“Council-controlled groups should follow their goals, treat workers well, and help the community”

The main goal of a council-controlled organisation is to do what its shareholders want, as written in the statement of intent. This includes both business and non-business goals.

You need to be a good employer. This means you should treat your workers fairly and well.

You should care about the community and the environment where you work. When you can, try to help or support these things.

If you’re a council-controlled trading organisation, you need to run your business in a sensible way.

Being a good employer means the same thing as it does in clause 36 of Schedule 7.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM171881.

Topics:
Government and voting > Local councils
Work and jobs > Worker rights
Environment and resources > Town planning
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58: Role of directors of council-controlled organisations, or

“Directors of council-run groups must help reach the group's goals”

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60: Decisions relating to operation of council-controlled organisations, or

“Rules for how councils make choices about the groups they control”

Part 5 Council-controlled organisations and council organisations
Directors

59Principal objective of council-controlled organisation

  1. The principal objective of a council-controlled organisation is to—

  2. achieve the objectives of its shareholders, both commercial and non-commercial, as specified in the statement of intent; and
    1. be a good employer; and
      1. exhibit a sense of social and environmental responsibility by having regard to the interests of the community in which it operates and by endeavouring to accommodate or encourage these when able to do so; and
        1. if the council-controlled organisation is a council-controlled trading organisation, conduct its affairs in accordance with sound business practice.

          1. In subsection (1)(b), good employer has the same meaning as in clause 36 of Schedule 7.