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Local Government Act 2002

Council-controlled organisations and council organisations - Monitoring and reporting

71A: Application of Part to listed companies

You could also call this:

“Rules for council companies that are listed on the stock market”

This part of the law talks about special rules for council-controlled organisations that are listed on the stock market. Here’s what you need to know:

If a council-controlled organisation, its holding company, or its controlling companies have shares listed on a licensed market, they don’t have to follow some usual rules. They don’t need to have a statement of intent, give half-yearly or quarterly reports, or deliver an annual report.

A holding company is a company that controls another company. Controlling companies are two or more companies that, if they worked together as one company, would be able to control the council-controlled organisation.

You can find out more about what a holding company means by looking at section 5 of the Companies Act 1993.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM172303.

Topics:
Government and voting > Local councils
Business > Industry rules
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Part 5 Council-controlled organisations and council organisations
Monitoring and reporting

71AApplication of Part to listed companies

  1. This section applies to a council-controlled organisation if the shares of any of the following are quoted on a licensed market (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013):

  2. the council-controlled organisation:
    1. a holding company of the council-controlled organisation:
      1. controlling companies of the council-controlled organisation.

        1. If subsection (1) applies, the council-controlled organisation is not required to—

        2. have a statement of intent under section 64:
          1. deliver a half-yearly report or quarterly report under section 66:
            1. deliver an annual report under section 67.

              1. In this section,—

                controlling companies means 2 or more companies whose degree of control over a council-controlled organisation, if exercisable by one notional company, would make the notional company a holding company of the council-controlled organisation

                  holding company has the same meaning as in section 5 of the Companies Act 1993.

                  Notes
                  • Section 71A: inserted, on , by section 7 of the Local Government Act 2002 Amendment Act 2004 (2004 No 63).
                  • Section 71A(1): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                  • Section 71A(2)(b): amended, on , by section 27 of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).