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Crown Entities Act 2004

Establishment and governance of Crown entities - Crown entity companies - Individual duty of members

95: Duty to comply with this Act and entity's Act

You could also call this:

"Crown entity members must follow the rules in this Act and their own Act."

If you are a member of a Crown entity company, you must follow the rules in this Act and the entity's Act. You owe this duty to the responsible Minister and the Crown entity company. If you do not follow the rules, you may be removed from your position.

You have a responsibility to make sure the company does not break the rules either. If the company does break the rules because of something you did, the company can take action against you. However, the only penalty you might face for breaking the rules is being removed from your position.

There is an exception to this, though - if you break the rules, you might still be liable for other things under different laws or rules, depending on what you did or did not do.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330338.

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Part 2Establishment and governance of Crown entities
Crown entity companies: Individual duty of members

95Duty to comply with this Act and entity's Act

  1. A member of a Crown entity company must not contravene, or cause or agree to the company's contravention of, this Act or the entity's Act (if any).

  2. This duty is owed to the responsible Minister and the Crown entity company.

  3. If a member does not comply with the duty, that member may be removed from office.

  4. A Crown entity company may bring action against a member for breach of the duty.

  5. A member is not liable for a breach of the duty, except for being removed from office as provided for in subsection (3) or in an action brought under subsection (4).

  6. Subsection (5) does not affect anything else for which the member may be liable under any other Act or rule of law arising from the act or omission that constitutes the breach.