Part 2 s 18 18 Crown Entities Act 2004 Version as at 1 July 2024 Acts must be for purpose of functions A statutory entity may do an act under section 16 or section 17 only for the purpose of performing its functions. Validity of acts 19 Acts in breach of statute are invalid (1) An act of a statutory entity is invalid, unless section 20 applies, if it is— (a) an act that is contrary to, or outside the authority of, an Act; or (b) an act that is done otherwise than for the purpose of performing its functions. (2) Subsection (1) does not limit any discretion of a court to grant relief in respect of a minor or technical breach. 20 Some natural person acts protected (1) Section 19, or any rule of law to similar effect, does not prevent a person dealing with a statutory entity from enforcing a transaction that is a natural person act unless the person dealing with the entity had, or ought reasonably to have had, knowledge— (a) of an express restriction in an Act that makes the act contrary to, or outside the authority of, the Act; or (b) that the act is done otherwise than for the purpose of performing the entity’s functions. (2) A person who relies on subsection (1) has the onus of proving that that person did not have, and ought not reasonably to have had, the knowledge referred to in that subsection. (3) A statutory entity must report, in its annual report, each transaction that the entity has performed in the year to which the report relates that was invalid under section 19 but enforced in reliance on this section. (4) For the avoidance of doubt, this section does not affect any person’s other remedies (for example, remedies in contract) under the general law. 21 Limits on protection of natural person acts Section 20 does not limit— 22 (a) section 60 (which provides for injunctions to require or restrain acts); or (b) the board of the statutory entity bringing an action against a member who voted for or otherwise authorised the act for breach of his or her individual duties as a member; or (c) a member who voted for or otherwise authorised the act being removed from office for breach of the individual duties of members or the collect‐ ive duties of the board; or

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