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Local Government Act 2002

Consequential amendments, repeals, revocations, transitional provisions, and savings - Transitional provisions

298: Community trusts

You could also call this:

“Rules for community groups that look after money from selling port shares”

If you’re part of a community trust that was set up under section 225D of the Local Government Act 1974 before this new law came into effect, don’t worry - your trust will keep going. The rules that were in place for your trust will still apply, even though they’ve been taken out of the old law.

If a local council, or a company that the council controls, sells shares in a port company, they can use the money they get from the sale in a few ways. They can pay for the costs of selling the shares, use it for council work, or give some of the money to a community trust like yours.

The same applies if the council gets money from one of its companies that has sold port company shares. The council can use that money to pay for the sale, for council work, or to support a community trust.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM174229.

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Part 12 Consequential amendments, repeals, revocations, transitional provisions, and savings
Transitional provisions

298Community trusts

  1. This section applies to any community trust which is established under section 225D of the Local Government Act 1974 and which is in existence immediately before the commencement of this section.

  2. Subject to the trust deed establishing a community trust to which this section applies, such a community trust continues in existence, and the provisions of subsections (3) and (4) of section 225D and of sections 225E to 225M of the Local Government Act 1974 continue to apply to that community trust as if they had not been repealed.

  3. Where any local authority or council-controlled organisation or subsidiary of a council-controlled organisation sells any shares or equity securities in any port company established under the Port Companies Act 1988 or where a local authority receives from a council-controlled organisation or a subsidiary of a council-controlled organisation any part of the proceeds of the sale of any such shares or equity securities, the local authority may apply any of the proceeds of the sale (including any income or capital gain arising on those proceeds) to—

  4. the payment of costs related to the sale; and
    1. the performance of any functions of that local authority; and
      1. a payment to a community trust to which this section applies.