NEW ZEALAND GAZETTE

No. 76

PART IV OVERALL CONDITIONS

15. Caveats

It is a condition of the vesting of all assets and liabilities in the Auckland Regional Services Trust that where the Auckland Regional Council is required, under section 707A of the Local Government Act 1974, to lodge a caveat in respect of any land:

(a) The Auckland Regional Services Trust shall, whenever requested to do so, produce for the District Land Registrar any instrument required to facilitate the registration of the caveat; and

(b) The Auckland Regional Services Trust shall co-operate with Auckland Regional Council in arranging for the caveat to be lodged and registered against the title to the land at the earliest practicable date.

16. Indemnity

It is a condition of the vesting of all assets and liabilities in the Auckland Regional Services Trust by this Order that, the Auckland Regional Services Trust shall indemnify the Auckland Regional Council against all claims and demands whatsoever which may be made against the Auckland Regional Council in respect of those assets and liabilities.

17. Accrued income

It is a condition on the vesting of assets and liabilities in the Auckland Regional Services Trust by this Order, that all income accruing up to 30 June 1993 in respect of the following classes of specified assets to be transferred to the Auckland Regional Services Trust by this Order shall be payable to or retained by the Auckland Regional Council:

(a) All rented property and interests in rented property;

(b) Assets represented by investments by way of transferable certificate of deposit, interest bearing deposit, stock, or like investment.

PART V DEBT

18. Debt management

(1) Effect is hereby given to the provisions of Chapter 7 of the Divestment Plan submitted to the Minister by the Auckland Regional Council and the Auckland Regional Services Trust on 4 February 1993, as amended on 26 February 1993, and as reproduced as Appendix A of the plan approved by the Minister.

(2) The Auckland Regional Council and the Auckland Regional Services Trust shall prepare and execute all documents necessary to effect the implementation of the provisions described in subclause (1) of this clause by 7 July 1993, or such later date as may be approved by the Minister.

(3) To the extent that the terms and conditions of the documents prepared under subclause (2) of this clause differ from the provisions described in subclause (1) of this clause, but are agreed by the Auckland Regional Council and the Auckland Regional Services Trust, and approved by the Minister, the terms and conditions of the documents prepared under subclause (2) of this clause shall prevail.

(4) If the Auckland Regional Council and the Auckland Regional Services Trust do not agree on the documents (and their terms and conditions) to be prepared under subclause (2) of this clause, the Minister shall determine the disagreement, as necessary to give effect to subclause (1) of this clause.

(5) Where the Minister makes a determination under subclause (4) of this clause, that determination shall be given effect to by Order in Council pursuant to section 707A (2) of the Local Government Act 1974.

PART VI IMPLEMENTATION

19. Transitional arrangements

(1) The following transitional arrangements shall apply to all assets vested in the Auckland Regional Services Trust by this Order from 30 March 1993 until the vesting date specified in this Order:

(a) The Auckland Regional Council shall not act in its capacity as owner of the shares of any of its local authority trading enterprises and the Ports of Auckland Limited except in accordance with the lawful directions of and as trustee for the Auckland Regional Services Trust:

(b) Except in accordance with the lawful directions of the Auckland Regional Services Trust, the Auckland Regional Council shall not effect or cause to allow the sale, purchase, lease, or otherwise materially affect the value, of—

(i) Any significant asset; or

(ii) Any shares in any of the Auckland Regional Council's local authority trading enterprises or the Ports of Auckland Limited, nor any of their assets,

to be transferred to the Auckland Regional Service Trust pursuant to this Order.

(c) The Auckland Regional Council shall support the Auckland Regional Services Trust being given the opportunity to be represented at the board meetings of all the Auckland Regional Council's local authority trading enterprises and the Ports of Auckland Limited and at all meetings involving joint venture business activities.

(d) The Auckland Regional Council shall support the supply to the Auckland Regional Services Trust of all periodic reports of all information including monthly accounts and debt management activities for the Auckland Regional Council's local authority trading enterprises and the Ports of Auckland Limited or other assets at the same time as they become available to the Auckland Regional Council.

(e) The Auckland Regional Council shall support the supply to the Auckland Regional Services Trust of any special information or other reports which may be relevant to the management of the Auckland Regional Council's local authority trading enterprises and the Ports of Auckland Limited or other assets at the same time as they become available to the Auckland Regional Council.

(f) Notwithstanding the provisions of clauses 4(1)(d), 5(1)(d), 6(1)(b), and 7(1)(d) of this Order and subject to paragraph (g) of this subclause, the Auckland Regional Council shall be entitled to receive and retain from the Auckland Regional Council's local authority trading enterprises and the Ports of Auckland Limited a dividend or dividends not exceeding in total $5.4 million after tax:

(g) Before promoting any dividend under paragraph (f) of this subclause, the Auckland Regional Council shall consult with the Auckland Regional Services Trust.

(2) Notwithstanding the provisions of paragraphs (a) and (d) of subclause (1) of this clause and of clause 8 of this Order, where settlement is effected on any property detailed in the Second Schedule to this Order on or before 30 June 1993, that property shall not vest in the Auckland Regional Services Trust but the proceeds of that sale shall vest in the Auckland Regional Services Trust.

20. Existing encumbrances

All property, real and personal, vested in the Auckland Regional Services Trust by this Order, shall be vested subject to all existing encumbrances.

21. Title to Property

Any reference, express or implied, to the “Auckland Regional Council” or to any of the former authorities of the Auckland Regional Council as defined in clause 10 of the Local Government (Auckland Region) Reorganisation Order 1989 in any instrument or other document whatsoever, or in any entry or record made in any register in relation to any property