Plain language law

New Zealand law explained for everyone

Sale and Supply of Alcohol Act 2012

Licensing trusts, community trusts, and other matters - Community trusts - Conduct of business

383: Financial statements

You could also call this:

“Trustees must prepare and publicly share accurate financial reports each year”

If you are a trustee of a community trust, you must make sure financial statements are prepared for the trust within 5 months after the end of each financial year. You have to prepare these statements in a way that accountants usually do. The financial statements must also be checked by the Auditor-General.

You must make the audited financial statements public as soon as possible after they have been checked. If you do not do what this section says, you can commit an offence and be liable to a penalty, which is explained in section 374(2) of the Companies Act 1993, but subject to section 376 of that Act. This means the rules that apply to companies also apply to you as a trustee.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3339937.

Topics:
Money and consumer rights > Banking and loans Business > Industry rules
Previous

382: Accounting records, or

"Keep track of a community trust's money by keeping accurate and easy-to-understand financial records."

Next

384: Annual meeting of electors, or

"A community trust must have a yearly meeting with its electors to discuss the trust's activities and finances."

Part 3 Licensing trusts, community trusts, and other matters
Community trusts: Conduct of business

383Financial statements

  1. The trustees of a community trust must ensure that, within 5 months after the end of each financial year, financial statements are prepared for the trust for the financial year.

  2. The financial statements must be prepared in accordance with generally accepted accounting practice.

  3. The financial statements must be audited by the Auditor-General.

  4. The audited financial statements must, as soon as practicable after the completion of their audit, be publicly notified in accordance with regulations made under this Act.

  5. If the trustees fail to comply with the requirements of this section, each trustee commits an offence and is liable on conviction to the penalty set out in section 374(2) of the Companies Act 1993 but subject to section 376 of that Act, which applies as if the trustees were the board of a company.

Notes
  • Section 383(1): amended, on , by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).