Sale and Supply of Alcohol Act 2012

Licensing trusts, community trusts, and other matters - Licensing trusts - Amalgamation of licensing trusts

345: Effect of Order in Council

You could also call this:

"What happens when the government makes a new rule to combine old trusts into a new one"

When an Order in Council is made under section 344(2), it must say when some things will happen, and that date must be at least 14 days after the order is made. On the date specified in the order, the old trusts are dissolved and a new trust is formed. The new trust gets all the property, money, and licences that belonged to the old trusts.

The new trust also takes on all the responsibilities and debts of the old trusts. You can think of it like the new trust is stepping into the shoes of the old trusts. The new trust can continue with any court cases that the old trusts were involved in.

When this happens, it does not mean the old trusts did anything wrong or broke any rules. It also does not give anyone the right to cancel contracts or make the old trusts do something they were not already supposed to do. The old trusts are not released from any of their responsibilities, and their employees do not get any special payments just because the trusts are amalgamating.

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This page was last updated on 25 May 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3339888.

Topics:

Government and voting > Government departmentsMoney and consumer rights > Gambling

344: Amalgamation by Order in Council, or

"Merging licensing trusts by a special government order"

346: Voluntary administration and liquidation under Companies Act 1993, or

"What happens when a licensing trust is in financial trouble and needs to close down or be managed by someone else"

Part 3Licensing trusts, community trusts, and other matters
Licensing trusts: Amalgamation of licensing trusts

345Effect of Order in Council

An Order in Council under section 344(2) must specify a date not less than 14 days after the date of the making of the order for the provisions in subsection (2) to apply.
On the date specified in the order,—
the amalgamating trusts are dissolved:
all real and personal property (including all licences under this Act) belonging to each of the amalgamating trusts vests in the new trust:
all money payable to the amalgamating trusts is payable to the new trust:
all liabilities, contracts, engagements, rights, and authorities of each of the amalgamating trusts are liabilities, contracts, engagements, rights, and authorities of the new trust:
all proceedings by or against the amalgamating trusts may be carried on or prosecuted by or against the new trust.

Nothing authorised or effected under this section—
places the amalgamating trusts in breach of, or default under, any contract, or in breach of trust, or in breach of confidence, or otherwise makes them guilty of a civil wrong; or
gives rise to a right for a person to—
1. terminate, cancel, or modify a contract or an agreement; or
2. enforce or accelerate the performance of an obligation; or
3. require the performance of an obligation not otherwise arising for performance; or
places the amalgamating trusts in breach of any enactment, rule of law, or contractual provision prohibiting, restricting, or regulating the assignment, transfer, or issue of any property or the disclosure of any information; or
releases a surety wholly or in part from an obligation; or
releases or discharges a contract or security; or
entitles any employee to receive any payment or other benefit by reason that he or she ceased, as a result of this Act, to be an employee of an amalgamating trust.

Compare

s 211(8)