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Crown Entities Act 2004

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

23: Dealings between statutory entities and other persons

You could also call this:

"Statutory entities must keep their word when dealing with you"

When you deal with a statutory entity, they can't say certain things against you. They can't say that someone they said was in charge of something is not really in charge. They also can't say that a document they gave you is not real or valid, unless you knew or should have known that already.

If you are dealing with a statutory entity, they might try to say that someone who works for them does not have the power to do something. But they can't say this if they had told you that the person did have that power. You can still go to court to challenge a decision made by a statutory entity, this rule does not change that. You can find more information about this by looking at s 18.

A statutory entity can say those things against you if you knew or should have known that they were not true. This means that if you had a reason to think something was not right, the statutory entity can use that against you.

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"Things done by a statutory entity are valid even if they're not the best choice for it"

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

23Dealings between statutory entities and other persons

  1. A statutory entity may not assert against a person dealing with the entity that—

  2. a person held out by the statutory entity to be a member, office holder, chief executive, employee, or agent of the statutory entity (as the case may be)—
    1. has not been duly appointed in that capacity or has ceased to be appointed in that capacity; or
      1. does not have the authority to exercise a power which, given the nature of the statutory entity, a person appointed to that capacity customarily has authority to exercise; or
        1. does not have the authority to exercise a power that the statutory entity holds him or her out as having; or
        2. a document issued on behalf of the entity by a member, office holder, chief executive, employee, or agent of the entity with actual or usual authority to issue the document is not valid or genuine.

          1. However, a statutory entity may assert any of those matters if the person dealing with the statutory entity had, or ought reasonably to have had, knowledge of the matter.

          2. Nothing in this section affects a person's right to apply, in accordance with the law, for judicial review.

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