Contents (2012 - 74)
Boarding Houses Act 2012 No 74
38 Meaning of “close associate”
(1) For the purposes of this Part, a person is a close associate of an applicant for an authorisation, approval or exemption under this Part or an authorised operator if the person:(a) holds or will hold any relevant financial interest, or is or will be entitled to exercise any relevant power (whether in the person’s own right or on behalf of any other person), in the business of the applicant or operator that is or will be carried on under the authority of the authorisation, approval or exemption, and by virtue of that interest or power is or will be able (in the opinion of the Secretary) to exercise a significant influence over or with respect to the management or operation of that business, or(b) holds or will hold any relevant position, whether in the person’s own right or on behalf of any other person, in the business of the applicant or operator that is or will be carried on under the authority of the authorisation, approval or exemption.(2) For the purposes of this section, a financial institution is not a close associate by reason only of having a relevant financial interest in relation to a business.(3) The provisions of this section extend to relevant financial interests and relevant powers even if those interests and powers are not payable, exercisable or otherwise enforceable as a matter of law or equity, but are nevertheless payable, exercisable or otherwise enforceable as a matter of fact.(4) In this section:relevant financial interest, in relation to a business, means:(a) any share in the capital of the business, or(b) any entitlement to receive any income derived from the business, or to receive any other financial benefit or financial advantage from the carrying on of the business, whether the entitlement arises at law or in equity or otherwise, or(c) any entitlement to receive any rent, profit or other income in connection with the use or occupation of premises on which the business is or is to be carried on (such as, for example, an entitlement of the owner of the premises at which the business is carried on to receive rent as lessor of the premises).relevant position means:(a) the position of director, manager or secretary, or(b) any other position, however designated, if it is an executive position.relevant power means any power, whether exercisable by voting or otherwise and whether exercisable alone or in association with others:(a) to participate in any directorial, managerial or executive decision, or(b) to elect or appoint any person to any relevant position.