Plain language law

New Zealand law explained for everyone

Incorporated Societies Act 2022

Administration of societies - Committee and officers - Conflict of interest disclosure rules

69: What is fair value

You could also call this:

"What makes a fair deal for a society?"

Illustration for Incorporated Societies Act 2022

When you are working out if a society gets a fair deal in a transaction, you look at what the society and the person involved know at the time. You consider what is normal for the society's activities and if the terms are usual. If the transaction is normal and the terms are usual, it is assumed the society gets a fair deal, as explained in section 68.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS100946.

This page was last updated on — View changes

Topics:
Money and consumer rights > Consumer protection
Previous

68: Avoidance of transactions, or

"Stopping a deal if someone in charge benefits from it"

Next

70: Onus of proving fair value, or

"Proving a deal is fair when someone in charge benefits from it"

Part 3Administration of societies
Committee and officers: Conflict of interest disclosure rules

69What is fair value

  1. For the purposes of section 68, whether a society receives fair value under a transaction is determined on the basis of the information known to the society and to the interested officer at the time the transaction is entered into.

  2. If a transaction is entered into by the society in the ordinary course of its activities and on usual terms and conditions, the society is presumed to receive fair value under the transaction.

Compare