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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Water organisations - Governance of water organisations: general

48: Board directors

You could also call this:

"Who can be a director of a water organisation and what rules they must follow"

Illustration for Local Government (Water Services) Act 2025

When you are a director of a water organisation, you must be chosen because you are good at doing the job. You and the other directors must have a good mix of skills, knowledge, and experience to provide water services. This means you all together should know a lot about water services.

If you want to be a director of a water organisation, you cannot be an elected member of a territorial authority that owns part of the water organisation. You also cannot be an employee of a territorial authority that owns part of the water organisation, or an employee of any other owner of the water organisation, or an employee of the water organisation itself.

There is an exception to this rule if the water organisation is owned by trustees of one or more consumer trusts. This rule about directors is in addition to some rules in the Companies Act 1993.

Some rules in the LGA 2002 do not apply to water organisations that are controlled by councils, such as rules about appointing directors, the role of directors, the main goal of the organisation, and making decisions about the organisation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004336.

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"Rules for councils with existing water service contracts when setting up a water organisation"

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Part 2Structural arrangements for providing water services
Water organisations: Governance of water organisations: general

48Board directors

  1. A director of a water organisation must be appointed on the basis of their competency to perform the role.

  2. The directors of a water organisation must collectively have an appropriate mix of skills, knowledge, and experience in relation to providing water services.

  3. A person is not able to be appointed as a director of a water organisation if the person is—

  4. an elected member of a territorial authority that is a shareholder in the water organisation; or
    1. an employee of a territorial authority that is a shareholder in the water organisation; or
      1. an employee of any other shareholder in the water organisation; or
        1. an employee of the water organisation.

          1. Subsection (3) does not apply if the water organisation is wholly owned by the trustees of 1 or more consumer trusts.

          2. This section applies in addition to sections 150 to 159 of the Companies Act 1993.

          3. The following provisions of the LGA 2002 do not apply if the water organisation is a council-controlled organisation:

          4. section 57 (appointment of directors):
            1. section 58 (role of directors of council-controlled organisations):
              1. section 59 (principal objective of council-controlled organisation):
                1. section 60 (decisions relating to operation of council-controlled organisations).