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