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Crown Entities Act 2004

Establishment and governance of Crown entities - Statutory entities - Conflict of interest disclosure rules

69: Entity may avoid certain acts done in breach of conflict of interest rules

You could also call this:

"A Crown entity can undo a decision if someone involved broke the rules about personal interests."

Illustration for Crown Entities Act 2004

You can stop something a Crown entity did if a member broke conflict of interest rules. This can happen if the rule break is told to the Minister within three months, as stated in section 67. You cannot stop the act if the entity gets a fair deal from it. You can stop an act if a member has an interest in it, but only if you follow this rule. The entity must follow section 66 to avoid the act. If the entity gets a good price for something, they cannot stop the act. If a member breaks the rules, the entity can stop what they did, but they must do it correctly. They have to tell the Minister about the problem, as stated in the rules. The entity must also make sure they are not getting a bad deal.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330303.

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68: Permission to act despite being interested in matter, or

"When you have a conflict of interest, you can still make decisions if you get written permission."

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70: What is fair value, or

"What is a fair price when doing business?"

Part 2Establishment and governance of Crown entities
Statutory entities: Conflict of interest disclosure rules

69Entity may avoid certain acts done in breach of conflict of interest rules

  1. A statutory entity may avoid a natural person act done by the entity in respect of which a member was in breach of section 66.

  2. However, the act—

  3. may be avoided only within 3 months of the affected act being disclosed to the responsible Minister under section 67; and
    1. cannot be avoided if the entity receives fair value in respect of the act.

      1. An act in which a member is interested can be avoided on the ground of the member's interest only in accordance with this section.

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