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Accident Compensation Act 2001

Accident Compensation Corporation - The Corporation

266: Provisions relating to Crown entity subsidiaries

You could also call this:

“Rules for special companies created by ACC”

The Corporation can create a special type of company called a Crown entity subsidiary. If the Corporation does this, it must own the whole company. The main goal of this company is to be successful and make money, just like any other business that isn’t owned by the government.

This special company is considered a Crown entity, which means it follows the rules in the Crown Entities Act 2004. It’s not a local authority, so it doesn’t have to follow certain rules about borrowing money. Also, this company has to pay taxes like other businesses.

When this special company makes money, the Corporation decides how to use that money. They make this decision based on their plan for the future or by following instructions from the government.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM103149.

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Part 7 Accident Compensation Corporation
The Corporation

266Provisions relating to Crown entity subsidiaries

  1. A Crown entity subsidiary formed by the Corporation must be wholly owned by the Corporation.

  2. The principal objective of a Crown entity subsidiary is to operate as a successful business and, to that extent, to be—

  3. as profitable and efficient as any comparable business not owned by the Crown; and

      1. A Crown entity subsidiary of the Corporation—

      2. is a Crown entity for the purposes of the Crown Entities Act 2004:
        1. is not a local authority for the purposes of section 73 of the Public Finance Act 1989:
          1. is not exempt from income tax.

            1. The returns generated by the activities of any Crown entity subsidiary must be applied by the Corporation on a basis determined in the statement of intent under section 272 or (in the absence of such a determination) in a policy direction under section 103 of the Crown Entities Act 2004.

            Notes
            • Section 266 heading: amended, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
            • Section 266(1): amended, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
            • Section 266(2): amended, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
            • Section 266(2)(b): repealed, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
            • Section 266(3): substituted, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).
            • Section 266(4): amended, on , by section 200 of the Crown Entities Act 2004 (2004 No 115).