When a part of a council's work is transferred to someone else, you need to know about the liabilities. A liability is something that a council is responsible for, like a debt. The rule about liabilities is in a part of the law called section 594ZI of the Local Government Act 1974, but this rule is no longer in use.
You can find out more about what happened to this rule by looking at the Local Government Act 2002. This law changed the original rule on 1 July 2003. The change was made by section 266 of the Local Government Act 2002.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM422650.
594ZH: Exclusion of Public Bodies Leases Act 1969, or
"Some old lease rules don't apply when organisations transfer things to each other"
594ZJ: Certain matters not affected by transfer of undertaking to local authority trading enterprise, or
"Some things stay the same when a local authority trading enterprise takes over something."
