Receiverships Act 1993

Local authorities and water organisations

Schedule 1: Modifications and exceptions that apply in relation to receivers of assets of local authorities

You could also call this:

"Changes to the rules when a receiver manages a local authority's assets"

Illustration for Receiverships Act 1993

When a receiver is appointed to manage the assets of a local authority, some rules apply differently. You need to read some parts of the Receiverships Act 1993 as if they said something else. For example, when it says "director", you should read it as "member of the local authority".

When it says "liquidator", you should read it as "Commission appointed under section 258F of the Local Government Act 2002", except when it talks about section 30(3). You should also read "Registrar" as "Registrar of Companies".

There are also some exceptions to the normal rules. For instance, section 15 does not apply, and section 31 does not apply. The receiver must send copies of some documents to the Secretary for Local Government and the Controller and Auditor-General.

The receiver has to report any offences they think have been committed against the Local Government Act 2002 or the Local Authorities (Members' Interests) Act 1968. They must also make some reports available for public inspection. The High Court can order that a receiver cannot exercise their rights until the court says so, in certain situations. The Secretary for Local Government and the Controller and Auditor-General have the power to make some applications under the Act.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327790.


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Schedule 1AA: Transitional, savings, and related provisions, or

"Rules for when law changes apply to receiverships"


1Modifications and exceptions that apply in relation to receivers of assets of local authorities Empowered by s 40C(2)

1Application of modifications and exceptions

  1. The modifications and exceptions to the provisions of this Act that are set out in this schedule are the modifications and exceptions referred to in section 40C(2).

2References to directors

  1. Every reference to a director or the directors must be read as if it were a reference to a member or the members of the local authority.

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3References to liquidator

  1. Every reference to a liquidator, except the reference in section 30(3), must be read as if it were a reference to a Commission appointed under section 258F of the Local Government Act 2002.

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Notes
  • Schedule 1 clause 3: amended, on , by section 43 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

4References to liquidation

  1. Every reference to a liquidation, except the references in section 30(3), must be read as if it were a reference to a Commission appointed under section 258F of the Local Government Act 2002.

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Notes
  • Schedule 1 clause 4: amended, on , by section 43 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).

5References to Registrar

  1. Every reference to the Registrar must be read as if it were a reference to the Registrar of Companies.

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6Persons disqualified from appointment

  1. In addition to the persons specified in section 5(2), a person disqualified by section 3 of the Local Authorities (Members' Interests) Act 1968 or clause 1 of Schedule 7 of the Local Government Act 2002 from holding office as a member of the local authority is disqualified from being appointed as, or acting as, a receiver unless the court orders otherwise.

  2. The reference in section 5(3) to being disqualified under section 5(2) must be read as if it included a reference to being disqualified under subclause (1).

Notes
  • Schedule 1 clause 6: replaced, on , by section 77(2) of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).

7Exception in relation to obligations of grantor

  1. The obligation of a local authority to comply with section 12 is subject to section 40D(4), in that a local authority may only be required to comply with section 12 to the extent that any such compliance will not, in the reasonable opinion of the local authority, interfere with the local authority's ability to exercise or perform its rights, powers, and duties in relation to those assets not charged in favour of the appointor of the receiver or not the subject of the receivership.

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8Exception in relation to execution of documents

  1. Section 13 is subject to section 40D(4), in that the power of the receiver to execute documents in the name of and on behalf of a local authority, and to use any common seal of a local authority, may be exercised only in relation to assets charged in favour of the appointor of the receiver.

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9Section 15 (which relates to power to make calls on shares) not to apply

  1. Section 15 does not apply.

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10Modification of general duties imposed by section 18

  1. The general duties imposed on receivers by section 18 are subject to the constraints imposed on receivers by section 40D(1).

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11Modifications in relation to reports by receiver

  1. Nothing in sections 23 and 24 requires a receiver to include in any report any information that could be properly withheld if the Local Government Official Information and Meetings Act 1987 applied to that report.

  2. If the receiver prepares a report under section 23 or section 24, the receiver must make that report available for public inspection at the offices and libraries of the relevant local authority and must make copies of any such report available to the public free of charge or at a reasonable charge.

  3. Section 26(1) applies as if it required the receiver to send a copy of every report prepared under section 23 or section 24 to the Secretary for Local Government, the Controller and Auditor-General, and the Parliamentary Library.

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12Reporting of offences

  1. The obligation imposed on a receiver by section 28 to report any offence that the receiver considers has been committed against any of the Acts specified in that section includes, in addition, an obligation to report any offence that the receiver considers has been committed against the Local Government Act 2002 or the Local Authorities (Members' Interests) Act 1968.

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13Exceptions in relation to preferential claims

  1. Section 30(2)(b) applies only to those preferential claims that are applicable to the local authority.

  2. Section 30(4) does not apply.

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14Section 31 (which relates to liquidation or bankruptcy) does not apply

  1. Section 31 does not apply.

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15Exception in relation to Commissioners and commission

  1. If a Commissioner of a local authority is or has been appointed under section 255 or section 258 of the Local Government Act 2002 or if a commission has been appointed under clause 14 of Schedule 15 of that Act (either before or after the appointment of a receiver in respect of some or all of the assets or rates of that local authority under section 40A or section 40B(1)), the High Court may order that any receiver so appointed may not, until the High Court so orders, exercise any of the rights, powers, and duties of a receiver.

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16Power of Secretary for Local Government and Controller and Auditor-General to make certain applications

  1. Sections 34(3), 35(2), and 37(1) apply as if the Secretary for Local Government and the Controller and Auditor-General were specified in those sections as persons entitled to make applications under those sections.

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17Section 41 (which relates to repeals) not to apply

  1. Section 41 does not apply.

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18Copies of documents

  1. Copies of the documents required by sections 8(3), 11(4), 28(1), and 29(1) to be sent to the Registrar must be sent to the Secretary for Local Government and to the Controller and Auditor-General.

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