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Local Government Act 2002

Savings

Schedule 4: Provisions relating to Local Government Commission and its proceedings

You could also call this:

“Rules for how the Local Government Commission works and makes decisions”

The Local Government Commission is a group that helps with local government matters. Here’s how it works:

Members are appointed for up to 5 years and can be reappointed. They can leave their job early for different reasons, like resigning or being removed by the Minister.

The Commission has meetings to make decisions. At least half the members need to be there to have a meeting. The chairperson leads the meetings, or someone else if they’re not there.

Members must tell the Commission if they have any personal interests in the things they’re deciding on. If they do, they can’t take part in those decisions.

The Commission can create smaller groups called committees to work on specific tasks. They can also ask experts for advice or hire consultants to help them.

The Commission has a Chief Executive Officer to help run things. Members aren’t personally responsible if something goes wrong, as long as they acted in good faith.

Every year, the Commission writes a report about what they’ve done and gives it to the Minister, who then shares it with Parliament.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM175178.

Topics:
Government and voting > Local councils
Government and voting > Government departments
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4Provisions relating to Local Government Commission and its proceedings Empowered by s 36

1Interpretation

  1. In this schedule, unless the context otherwise requires,—

    member means a member of the Commission appointed under section 33

      transaction means a matter referred to in clause 17(2).

      2Terms and conditions of appointment

      1. A member (including the member appointed as the chairperson) is to be appointed for the term, not exceeding 5 years, that is specified in his or her appointment.

      2. A member is eligible for reappointment.

      Compare

      3Vacation of office

      1. A member who is in office at the end of his or her term of appointment continues to hold office until—

      2. the member is reappointed; or
        1. the member's successor is appointed; or
          1. the member is informed in writing by the Minister that he or she is not to be reappointed; or
            1. the member resigns his or her office by sending a written notice to the Minister.

              1. A member may, at any time, be removed from office, by written notice from the Minister, for any reason that, in the Minister’s opinion, justifies the removal.

              2. The notice referred to in subclause (2) must—

              3. state the date on which the removal takes effect, which must not be earlier than the date on which the notice is received; and
                1. state the reasons for the removal.

                  1. The Minister must notify the removal in the Gazette as soon as practicable after giving the notice under subclause (2).

                  2. If a member dies, resigns, or is removed from office, his or her office becomes vacant.

                  3. A vacancy under this clause is an extraordinary vacancy, and must be filled in the manner in which the appointment to the vacant office was made.

                  4. A person appointed to fill an extraordinary vacancy must be appointed for the residue of the term for which the vacating member was appointed.

                  Compare
                  Notes
                  • Schedule 4 clause 3(2): replaced, on , by section 32 of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).
                  • Schedule 4 clause 3(2A): inserted, on , by section 32 of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).
                  • Schedule 4 clause 3(2B): inserted, on , by section 32 of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).

                  4Deputies of members

                  1. If a member is, or is likely to be, unable to perform his or her duties because of illness, absence, or any other reason, and the Minister considers that the inability to perform the duties is likely to continue for a period of more than 14 days, the Minister may appoint a deputy to perform—

                  2. all the functions, responsibilities, duties, and powers of the member; or
                    1. the functions, responsibilities, duties, and powers that are specified in the document appointing the deputy.

                      1. If the Commission is considering a proposal affecting a local authority and a member of the Commission is also a member of the local authority, the member of the Commission is to be treated as unable to perform the duties of his or her office in respect of the proposal.

                      2. A person appointed by the Minister under subclause (1) is, while acting in terms of the appointment, to be treated as a member of the Commission, and no acts done by the Commission while any person is so acting are to be questioned in any proceedings on the grounds that the occasion for the appointment of the person had not arisen or had ceased.

                      Compare

                      5Temporary members

                      1. The Minister may, at the request of the Commission, appoint a person or persons to be a temporary member or members for the purposes of any function of the Commission under any Act.

                      2. An appointment may be made under subclause (1) even though there may already be 3 members of the Commission, and any person so appointed is, subject to the terms of his or her appointment, to be treated for all purposes as a member of the Commission, and no acts done by the Commission while a person is so acting are to be questioned in any proceedings on the grounds that the occasion for the appointment had not arisen or had ceased.

                      Compare

                      6Duties of members

                      1. A member, when exercising powers or performing duties as a member, must act—

                      2. in good faith; and
                        1. with reasonable care, diligence, and skill; and
                          1. with honesty and integrity.

                            1. The Commission must ensure that—

                            2. it acts in a manner consistent with its functions; and
                              1. its activities are conducted efficiently and effectively; and
                                1. it operates in a financially responsible manner.

                                  7Remuneration

                                  1. The members are to be paid remuneration by way of fees, allowances, or expenses (as determined by the Minister) out of money appropriated by Parliament for the purpose.

                                  8Meetings

                                  1. Meetings of the Commission are to be held at the times and places that the Commission or its chairperson appoints.

                                  2. At every meeting of the Commission, the quorum is—

                                  3. half of the members if the number of members is even; and
                                    1. a majority of the members if the number of members is odd; but
                                      1. in no case, to be fewer than 2 members.

                                        Compare

                                        9Chairperson to preside

                                        1. The chairperson must preside at all meetings of the Commission at which he or she is present.

                                        2. The members present must appoint one of their number (not being a temporary member) to be the chairperson for the meeting if—

                                        3. the chairperson is not present; or
                                          1. there is no chairperson.

                                            1. The appointed person has and may exercise all the powers, duties, and functions of the chairperson for the purposes of the meeting.

                                            10Voting

                                            1. A matter to be decided by the Commission must be decided by a majority of the votes cast.

                                            2. The presiding member has—

                                            3. a deliberative vote; and
                                              1. a casting vote if there are more than 2 members voting and there is an equality of votes.

                                                Compare

                                                11Resolution assented to by all members

                                                1. A resolution in writing signed or assented to by letter, facsimile message, or electronic message by all members is as valid and effectual as if it had been passed at a meeting of the Commission duly called and constituted.

                                                2. The resolution may consist of several documents in the same form, each signed or appearing to have been sent by 1 or more members.

                                                12Methods of holding meetings

                                                1. A meeting of the Commission may be held either—

                                                2. by a number of the members constituting a quorum assembling together at the place, date, and time appointed for the meeting; or
                                                  1. by means of audio, or audio and visual, or electronic communication by which all members participating and constituting a quorum can simultaneously communicate with each other throughout the meeting.

                                                    13Procedure generally

                                                    1. Except as otherwise provided in this Act, the Commission may regulate its own procedure.

                                                    14Ordinary meetings

                                                    1. The Commission must appoint the times and places for all its ordinary meetings.

                                                    15Special meetings

                                                    1. The chairperson or any 2 members may at any time call a special meeting of the Commission by giving each member for the time being in New Zealand a written notice stating—

                                                    2. the time and place of the meeting; and
                                                      1. the business to be transacted at it.

                                                        1. The members must be given—

                                                        2. at least 7 days' notice of the meeting; or
                                                          1. if they are satisfied that the business to be transacted is urgent, any shorter period of notice to which all members entitled to be notified agree.

                                                            1. The notice must be either given to a member or sent to the member's last known address in New Zealand.

                                                            2. Only the business stated in the notice may be transacted at the meeting.

                                                            16Specialist advice

                                                            1. The Commission may invite any officer of the public service or any other person or a representative of any body who or that, in the opinion of the Commission, has specialist knowledge that is likely to be of assistance to the Commission to attend any meeting or discussion held by the Commission and to take part in the proceedings.

                                                            2. The Commission may engage any consultants that it thinks necessary or desirable to assist it to carry out its functions.

                                                            3. The Commission may pay to a person engaged under subclause (2), for services rendered by the person, the fees or commissions or both that it thinks fit, and may reimburse the person for expenses reasonably incurred in rendering services for the Commission.

                                                            Compare
                                                            Notes
                                                            • Schedule 4 clause 16(1): amended, on , by section 135 of the Public Service Act 2020 (2020 No 40).

                                                            17Obligation to disclose interest

                                                            1. A member who (otherwise than as a member) is interested, directly or indirectly, in any of the matters listed in subclause (2) must, as soon as practicable after the member knows about the relevant facts, disclose the nature of the interest in accordance with clause 19.

                                                            2. The matters are—

                                                            3. the Commission's performance of its functions or exercise of its powers:
                                                              1. an arrangement, agreement, or contract made or entered into, or proposed to be made or entered into, by the Commission.

                                                                18Meaning of interested

                                                                1. A member is interested in a transaction to which the Commission is a party if, and only if, the member—

                                                                2. is a party to, or will or may derive a material financial benefit from, the transaction; or
                                                                  1. has a material financial interest in another party to the transaction; or
                                                                    1. is a director, officer, member, or trustee of another party to, or person who will or may derive a material financial benefit from, the transaction; or
                                                                      1. is the parent, child, or spouse of another party to, or person who will or may derive a material financial benefit from, the transaction; or
                                                                        1. is otherwise directly or indirectly materially interested in the transaction.

                                                                          19Disclosure of interest

                                                                          1. A member must, immediately after becoming aware of his or her interest in a transaction or proposed transaction with the Commission, cause to be entered in an interests register maintained by the Commission, and disclose to the Commission,—

                                                                          2. the nature and monetary value of the member's interest, if the monetary value can be quantified; or
                                                                            1. the nature and extent of the member's interest, if the monetary value cannot be quantified.

                                                                              1. A general notice entered in the interests register or disclosed to the Commission to the effect that a member is a shareholder, director, officer, member, or trustee of a named company or other person and is to be regarded as interested in any transaction that may, after the date of the entry or disclosure, be entered into with that company or person, is a sufficient disclosure of interest in relation to that transaction.

                                                                              20Consequences of disclosure

                                                                              1. A member who discloses his or her interest under clause 19—

                                                                              2. must not take part in any deliberation or decision of the Commission relating to the matter; and
                                                                                1. is to be disregarded for the purpose of forming a quorum for that part of a meeting of the Commission during which a deliberation or decision relating to the matter occurs or is made.

                                                                                  1. Subclause (1) is subject to clause 22.

                                                                                  21Matters to be delegated to committee

                                                                                  1. The Commission must delegate a deliberation or decision to a committee if the effect of clause 19 is that there is not a quorum of members able to take part in the deliberation or decision, or to form a quorum.

                                                                                  2. The committee must consist of a majority of persons—

                                                                                  3. who are not interested in the transaction; and
                                                                                    1. in the case of members of the committee who are not members of the Commission, who are appointed by the Commission with the agreement of the Minister.

                                                                                      1. Subclause (1) is subject to clause 22.

                                                                                      22Exceptions

                                                                                      1. Clause 20 does not apply—

                                                                                      2. to any deliberation or decision of the Commission that is made in accordance with any existing contract that governs the way in which the deliberation or decision is to be made; or
                                                                                        1. to any deliberation or decision of the Commission to establish a committee, and to delegate the matter to a committee of the Commission, under clause 21.

                                                                                          1. In this clause, existing contract means a contract—

                                                                                          2. that was entered into by or on behalf of the Commission; and
                                                                                            1. in respect of which the person, or a majority of the persons, making the decision by or on behalf of the Commission were not interested in the transaction.

                                                                                              23Effect of non-compliance

                                                                                              1. The validity of a transaction entered into by the Commission is not affected by the fact that a member fails to comply with the disclosure requirements in clauses 17 to 22.

                                                                                              24Committees

                                                                                              1. The Commission may, from time to time, appoint, discharge, alter, continue, or reconstitute committees comprising 2 or more members of the Commission, 1 of whom must be appointed as chairperson of the committee.

                                                                                              2. The Commission may refer to a committee appointed by it under this clause any proposal or matter for investigation or inquiry, and may delegate to the committee any of the functions, responsibilities, powers, or duties conferred or imposed upon the Commission by this or any other enactment in accordance with clauses 25 to 28.

                                                                                              3. A committee may regulate its own procedure, subject to any direction from the Commission.

                                                                                              4. Clauses 8 to 23 apply to a committee with all necessary modifications.

                                                                                              Compare

                                                                                              25Delegations

                                                                                              1. The Commission may by writing, either generally or specifically, delegate any of its functions or powers to a committee of the Commission.

                                                                                              2. However, the Commission may not delegate its power to delegate.

                                                                                              26Effect of delegation

                                                                                              1. A committee to whom any functions or powers are delegated may carry out the functions or exercise the powers in the same manner and with the same effect as if they had been conferred on the committee directly by this Act and not by delegation.

                                                                                              2. Subclause (1) applies subject to any direction given or condition imposed by the Commission.

                                                                                              27Presumption of acting in accordance with delegation

                                                                                              1. A committee that appears to act under a delegation is, in the absence of proof to the contrary, presumed to be acting in accordance with the terms of the delegation.

                                                                                              28Other matters relating to delegation

                                                                                              1. A delegation—

                                                                                              2. is revocable at will, but the revocation does not take effect until it is communicated to the delegate; and
                                                                                                1. continues in force according to its terms until it is revoked; and
                                                                                                  1. does not prevent the Commission from performing a function or exercising a delegated power.

                                                                                                    29Chief Executive Officer

                                                                                                    1. There may from time to time be appointed under the Public Service Act 2020 a Chief Executive Officer of the Commission to enable the Commission to carry out and exercise its functions, responsibilities, duties, and powers.

                                                                                                    2. A person may hold office under this clause in conjunction with any other office in the public service.

                                                                                                    Compare
                                                                                                    Notes
                                                                                                    • Schedule 4 clause 29(1): amended, on , by section 135 of the Public Service Act 2020 (2020 No 40).
                                                                                                    • Schedule 4 clause 29(2): amended, on , by section 135 of the Public Service Act 2020 (2020 No 40).

                                                                                                    30Liability of members

                                                                                                    1. A member is not personally liable, in an action taken against him or her by the Commission, for any liability of the Commission, or for any act done or omitted to be done by the Commission or by any person acting under a delegation of the Commission's functions and powers, if the member acted in good faith in pursuance or intended pursuance of the functions or powers of the Commission.

                                                                                                    2. Every member is indemnified by the Commission—

                                                                                                    3. for costs and damages for any civil liability arising from any action brought by a third party, if the member was acting in good faith and in pursuance or intended pursuance of the functions or powers of the Commission; and
                                                                                                      1. for costs arising from any successfully defended criminal action relating to actions or omissions in his or her capacity as a member.

                                                                                                        1. The Crown must meet any costs and damages arising from this indemnity out of money appropriated by Parliament.

                                                                                                        2. References in this clause to members include references to members of any committee of the Commission.

                                                                                                        31Annual report

                                                                                                        1. The Commission must provide to the Minister a report of its proceedings and operations during each year ending with 30 June as soon as practicable after the end of that year.

                                                                                                        2. A copy of the report must be presented to the House of Representatives as soon as practicable after its receipt by the Minister.

                                                                                                        Compare