Local Government Act 1993 No 30
Current version for 24 November 2014 to date (accessed 29 November 2014 at 09:50)

Part 1 General

355   How does a council exercise its functions?

A function of a council may, subject to this Chapter, be exercised:
(a)  by the council by means of the councillors or employees, by its agents or contractors, by financial provision, by the provision of goods, equipment, services, amenities or facilities or by any other means, or
(b)  by a committee of the council, or
(c)  partly or jointly by the council and another person or persons, or
(d)  jointly by the council and another council or councils (including by means of a Voluntary Regional Organisation of Councils of which the councils concerned are members), or
(e)  by a delegate of the council (which may, for example, be a Voluntary Regional Organisation of Councils of which the council is a member).

356   Can a council financially assist others?

(1)  A council may, in accordance with a resolution of the council, contribute money or otherwise grant financial assistance to persons for the purpose of exercising its functions.
(2)  A proposed recipient who acts for private gain is not ineligible to be granted financial assistance but must not receive any benefit under this section until at least 28 days’ public notice of the council’s proposal to pass the necessary resolution has been given.
(3)  However, public notice is not required if:
(a)  the financial assistance is part of a specific program, and
(b)  the program’s details have been included in the council’s draft operational plan for the year in which the financial assistance is proposed to be given, and
(c)  the program’s proposed budget for that year does not exceed 5 per cent of the council’s proposed income from the ordinary rates levied for that year, and
(d)  the program applies uniformly to all persons within the council’s area or to a significant group of persons within the area.
(4)  Public notice is also not required if the financial assistance is part of a program of graffiti removal work.
Note. Part 4 of the Graffiti Control Act 2008 deals with graffiti removal work.

357   Can a council exercise its functions only within its area?

A council may exercise its functions within its area or outside its area, but may exercise its regulatory functions under Chapter 7 only within its area.

358   Restrictions on formation of corporations and other entities

(1)  A council must not form or participate in the formation of a corporation or other entity, or acquire a controlling interest in a corporation or other entity, except:
(a)  with the consent of the Minister and subject to such conditions, if any, as the Minister may specify, or
(b)  as provided by this Act.
(2)  This section does not prevent a council from being a member of a co-operative society or a company limited by guarantee and licensed not to use the word “Limited” in its name.
(3)  In applying for the Minister’s consent under subsection (1) (a), the council is required to demonstrate, to the Minister’s satisfaction, that the formation of, or the acquisition of the controlling interest in, the corporation or entity is in the public interest.
(3A)  The regulations may make provision for or with respect to the matters to be taken into account by the Minister in deciding whether to grant consent under this section and the conditions that may or must be specified by the Minister under this section.
(4)  In this section, entity means any partnership, trust, joint venture, syndicate or other body (whether or not incorporated), but does not include any such entity that is of a class prescribed by the regulations as not being within this definition.

359   Can a council act as an agent?

A council may act as the agent of another person or of the Crown, subject to the regulations.

How can a council exercise its functions?

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