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Local Government (Water Services) Act 2025

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

62: Termination and expiry of trust

You could also call this:

"When a consumer trust can end and what happens to its assets"

Illustration for Local Government (Water Services) Act 2025

A consumer trust keeps going forever, unless the trust deed says otherwise. You need to follow the rules in the trust deed. The trust can only end if it expires or if the Secretary approves its termination.

If a consumer trust wants to end, it must get approval from the Secretary first. The Secretary will only approve the end of the trust if it follows the rules of the Local Government (Water Services) Act 2025 and any regulations made under this Act.

When a consumer trust ends, the people in charge of the trust must give all the trust's assets to the territorial authority that started the trust. This includes shares in the water organisation and any other assets or debts the trust has.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004350.

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

62Termination and expiry of trust

  1. A consumer trust continues indefinitely, subject to the terms of the trust deed.

  2. A consumer trust must not, without the approval of the Secretary, be terminated other than by expiry.

  3. The Secretary must approve the termination of the trust if satisfied that the trust’s termination is consistent with this Act and any regulations made under this Act.

  4. When a consumer trust expires or is terminated, the trustees must transfer to the territorial authority or territorial authorities that established the trust—

  5. all shares that they hold in the water organisation that is owned or co-owned by the trust; and
    1. all other assets and liabilities that they hold for the trust.