Sale and Supply of Alcohol Act 2012

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

390: Effect of Order in Council

You could also call this:

"What happens when the government changes alcohol laws with an Order in Council"

When the government makes an Order in Council under section 389(2), it must say when the changes will happen, which is at least 14 days later. You need to know what happens on that date. The old trusts are dissolved and the new trust gets all their property, money, and licences.

The new trust also takes on all the old trusts' debts and responsibilities. The new trust can continue any court cases that the old trusts were involved in. The people who will run the new trust are the ones named in the proposal to amalgamate the trusts. The rules for the new trust are the ones included in the proposal.

If the government follows this process, it does not mean the old trusts did anything wrong. 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. You can compare this to s 219Z(9), (10) to see how it works. The old trusts are not released from their responsibilities and their employees are not entitled to any special payments. The process of amalgamating the trusts does not affect the contracts or securities of the old trusts.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3339946.


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

390Effect of Order in Council

  1. An Order in Council under section 389(2) must specify a date not less that 14 days after the date of the making of the order for the provisions in subsection (2) to apply.

  2. On the date specified in the order,—

  3. the amalgamating trusts are dissolved:
    1. all real and personal property (including all licences under this Act) belonging to each of the amalgamating trusts vests in the new trust:
      1. all money payable to the amalgamating trusts is payable to the new trust:
        1. all liabilities, contracts, engagements, rights, and authorities of the amalgamating trusts are liabilities, contracts, engagements, rights, and authorities of the new trust:
          1. all proceedings by or against the amalgamating trusts may be carried on or prosecuted by the new trust:
            1. the trustees of the new trust are the persons named as the first trustees of the trust in the amalgamation proposal:
              1. the trust deed of the new trust is the trust deed included in the amalgamation proposal.
                1. Nothing authorised or effected under this section—

                2. 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
                  1. gives rise to a right for a person to—
                    1. terminate, cancel, or modify a contract or an agreement; or
                      1. enforce or accelerate the performance of an obligation; or
                        1. require the performance of an obligation not otherwise arising for performance; or
                        2. 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
                          1. releases a surety wholly or in part from an obligation; or
                            1. releases or discharges a contract or security; or
                              1. 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.
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