Crown Entities Act 2004

Establishment and governance of Crown entities - Statutory entities - Validity of acts

21: Limits on protection of natural person acts

You could also call this:

"When working for a Crown entity, there are limits to how much you're protected from being sued."

Illustration for Crown Entities Act 2004

If you do something as a member of a Crown entity, you are protected from being sued in certain situations, as stated in section 20. However, this protection does not apply in all cases. You can still be held responsible if you breach your individual duties as a member, and the board of the statutory entity can take action against you.

You can also be removed from office if you breach your individual duties or the collective duties of the board. Additionally, people can apply for judicial review, which is a way of challenging decisions made by the Crown entity, in accordance with the law. The protection also does not limit section 60, which allows for injunctions, or section 69.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM329936.


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20: Some natural person acts protected, or

"Some things you do with a government organisation are okay, even if they're not perfectly legal."


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22: Acts that are not in best interests of statutory entity, or

"Things done by a group that might not help the group"

Part 2Establishment and governance of Crown entities
Statutory entities: Validity of acts

21Limits on protection of natural person acts

  1. Section 20 does not limit—

  2. section 60 (which provides for injunctions to require or restrain acts); or
    1. the board of the statutory entity bringing an action against a member who voted for or otherwise authorised the act for breach of his or her individual duties as a member; or
      1. a member who voted for or otherwise authorised the act being removed from office for breach of the individual duties of members or the collective duties of the board; or
        1. an application, in accordance with the law, for judicial review; or
          1. section 69.