Plain language law

New Zealand law explained for everyone

Motor Vehicle Sales Act 2003

Miscellaneous provisions - Transitional provisions for Fund

162: Winding up of Fund

You could also call this:

"What happens when the Fund's money is all used up"

Illustration for Motor Vehicle Sales Act 2003

You can think of the Fund as a pool of money. When all claims against it have been dealt with, the Institute can decide to wind it up. They must give notice of this at least one month before the wind-up date. The Institute can then use any remaining money in the Fund for any lawful purpose. You can find more information about what a chartered accountant is by looking at section 19 of the New Zealand Institute of Chartered Accountants Act 1996. The Institute must prepare final accounts for the Fund, which must be audited by a chartered accountant. A notice about winding up the Fund is a type of secondary legislation, and you can learn more about this by reading Part 3 of the Legislation Act 2019.

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 It might be out of date or be missing some parts.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

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM188973.

Topics:
Money and consumer rights > Savings and retirementMoney and consumer rights > Consumer protectionBusiness > Industry rules
Previous

161: Registrar must cancel registration for non-payment of contribution to Fund, or

"Registrar cancels registration if you don't pay your contribution"

Next

163: Review of operation of Act, or

"Checking how well the Motor Vehicle Sales Act works"

Part 5Miscellaneous provisions
Transitional provisions for Fund

162Winding up of Fund

  1. At any time after all the claims against the Fund have been received and fully dealt with, the Institute may, by notice, specify a date (being not less than 1 month after the date of the publication of the notice) on which the Fund is to be wound up.

  2. On and from the date so specified, any remaining assets of the Fund cease to be held by the Institute and may be used by the Institute for any lawful purpose that it determines.

  3. The Institute must, as soon as practicable after the date so specified, prepare final accounts for the Fund audited by a chartered accountant (within the meaning of section 19 of the New Zealand Institute of Chartered Accountants Act 1996) appointed for the purpose by the Institute.

  4. A notice under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Notes
  • Section 162(1): amended, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
  • Section 162(3): amended, on , by section 10 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).
  • Section 162(4): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).