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Crown Entities Act 2004

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

72: Effect of avoidance on third parties

You could also call this:

"You keep what you bought if you paid for it fairly and didn't know it was problematic."

Illustration for Crown Entities Act 2004

If you get something from someone who is not part of the entity, you still own it. You must have paid for it or given something of value in return. You must not have known about any problems with how the other person got it from the entity, as explained in section 69.

If you meet these conditions, avoiding an act under section 69 does not change your ownership. You got the property fairly and did not know about any issues. This means you can keep what you have acquired.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330306.

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

72Effect of avoidance on third parties

  1. The avoidance of an act under section 69 does not affect the title or interest of a person to or in property that that person has acquired if the property was acquired—

  2. from a person other than the entity; and
    1. for valuable consideration; and
      1. without knowledge of the circumstances of the act under which the person referred to in paragraph (a) acquired the property from the entity.