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Incorporated Societies Act 2022

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

70: Onus of proving fair value

You could also call this:

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

Illustration for Incorporated Societies Act 2022

You need to prove a transaction is fair if you knew about an officer's interest. The person seeking to keep the transaction must show it is fair. In other cases, the society must prove it did not get a fair deal, you can compare this to a previous law https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320676

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS100947.

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Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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69: What is fair value, or

"What makes a fair deal for a society?"

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71: Effect on third parties, or

"What happens to people who buy things from a society that's been cancelled"

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

70Onus of proving fair value

  1. A person who is seeking to uphold a transaction and who knew or ought to have known of the officer's interest at the time the transaction was entered into has the onus of establishing fair value.

  2. In any other case, the society has the onus of establishing that it did not receive fair value.

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