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New Zealand law explained for everyone

Crown Entities Act 2004

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

70: What is fair value

You could also call this:

"What is a fair price when doing business?"

Illustration for Crown Entities Act 2004

You are part of an entity that does things as part of its normal business. If you do something in the normal course of business, you are presumed to get a fair value for it. You get fair value if you do things on the usual terms and conditions. You need to think about what you and the interested member know at the time you do something. This helps you decide if you are getting a fair value for what you are doing. You can compare this to the Public Finance Act 1989 for more information. When you are working out if you are getting a fair value, consider what is normal for your business. This will help you make sure you are getting a fair deal. You should look at what you know and what the interested member knows at the time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330304.

Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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71: Onus of proving fair value, or

"Proving a deal is fair"

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

70What is fair value

  1. The entity is presumed to receive fair value in respect of an act that is done by the entity in the ordinary course of its business and on usual terms and conditions.

  2. Whether an entity receives fair value in respect of an act must be determined on the basis of the information known to the entity and to the interested member at the time the act is done.

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