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Crown Minerals Act 1991

Permits, access to land, and other matters - Enforcement, remedies, and appeals - Restrictions on indemnities and insurance

89ZZZA: Restriction on indemnities

You could also call this:

"Companies can't stop you paying fines if you break the law"

Illustration for Crown Minerals Act 1991

If you are a director, employee, or agent of a company, the company cannot protect you from paying a fine under the Crown Minerals Act 1991. You will still have to pay the fine if you do something wrong. The company also cannot pay for your legal costs if you are taken to court for doing something wrong.

If a company tries to protect you from paying a fine or legal costs, this protection is not valid. When we talk about a company protecting someone, we mean the company pays for or excuses the person's mistakes, whether before or after the mistake happens. You can read more about this in section 89ZZZB.

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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=LMS624642.

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89ZZZ: Relationship between pecuniary penalties and criminal liability, or

"Breaking the law can mean both a fine and a criminal charge for the same mistake."

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89ZZZB: Restriction on insurance, or

"No insurance for fines under the Crown Minerals Act"

Part 1BPermits, access to land, and other matters
Enforcement, remedies, and appeals: Restrictions on indemnities and insurance

89ZZZARestriction on indemnities

  1. A body corporate must not indemnify any director, employee, or agent, or former director, employee, or agent, of the body corporate or of any related body corporate (person C) in respect of—

  2. any pecuniary penalty imposed on person C under this Act; or
    1. any costs incurred by person C in defending any civil proceedings in which the pecuniary penalty referred to in paragraph (a) is imposed.

      1. An indemnity given in contravention of subsection (1) is void.

      2. In this section and section 89ZZZB, indemnify includes relieve or excuse from liability, whether before or after the liability arises, and indemnity has a corresponding meaning.

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      Notes
      • Section 89ZZZA: inserted, on , by section 18 of the Crown Minerals (Decommissioning and Other Matters) Amendment Act 2021 (2021 No 53).