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Electricity Industry Act 2010

Miscellaneous - State-owned enterprise asset reconfiguration and miscellaneous matters - State-owned enterprise asset reconfiguration: General provisions

119: Legal effect of directions

You could also call this:

“Special rules for giving orders to government-owned power companies”

You need to know about some special rules for directions given to state-owned electricity companies. These rules are part of a law called the Electricity Industry Act 2010.

The government ministers who own shares in these companies can give directions even if other laws say they can’t. The company’s board must follow these directions, no matter what other laws say.

The government and its ministers won’t get in trouble for giving these directions or advice. They’re allowed to do this.

The electricity companies and the people who work for them won’t get in trouble either if they do something because of these directions or advice. This includes the company’s directors, employees, advisers, and contractors.

However, these rules don’t protect anyone from getting in trouble if they break an agreement. Also, these rules don’t apply to a law called the Commerce Act 1986, but there are other special rules for that.

Lastly, the people who work for these electricity companies won’t be breaking any agreements or doing anything wrong if they follow these directions or advice.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3019740.

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Part 5 Miscellaneous
State-owned enterprise asset reconfiguration and miscellaneous matters: State-owned enterprise asset reconfiguration: General provisions

119Legal effect of directions

  1. The shareholding Ministers may give a direction under section 117 despite anything to the contrary in sections 4 to 7 of the State-Owned Enterprises Act 1986 or in the Companies Act 1993 or any other Act or rule of law.

  2. The board must comply with a direction given to it under section 117 despite anything to the contrary in the State-Owned Enterprises Act 1986, the Companies Act 1993, or any other Act or rule of law.

  3. Neither the Crown nor any shareholding Minister is in breach of, or liable to any person under, sections 4 to 7 of the State-Owned Enterprises Act 1986, the Companies Act 1993, or any other Act or rule of law by reason of giving a direction under section 117 or advice under section 118.

  4. No State generator, and no director, employee, or contractor of, or adviser to, a State generator, is in breach of, or liable to any person under, the State-Owned Enterprises Act 1986, the Companies Act 1993, or any other Act or rule of law by reason of any act or omission reasonably believed by the person to be necessary or desirable—

  5. to give effect to, or as a consequence of, a direction given under section 117; or
    1. as a result of advice given under section 118.

      1. In subsections (3) and (4), the references to any other Act do not extend to the Commerce Act 1986 (but section 130 provides specific authorisations under that Act).

      2. To avoid doubt, subsections (3) and (4) do not give any protection from liability for breach of, or default under, any agreement.

      3. No director, employee, or contractor of, or adviser to, a State generator is in breach of, or default under, any agreement, or in breach of confidence, or in the position of having committed any tort (including negligence) or other civil wrong, by reason of any act or omission referred to in subsection (4).

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