New Zealand Acts

CHARITIES ACT 2005 - SECT 46

46 Board or chief executive may treat parent entity and 1 or more other entities as forming part of single entity on certain terms and conditions

1 The Board or the chief executive may treat the parent entity and 1 or more other entities as forming part of the single entity on any terms and conditions that the Board or the chief executive thinks fit, including terms and conditions relating to—

a) the manner in which the single entity may apply for registration as a charitable entity; and

b) the name that must be treated as being the name of the single entity for the purposes of this Act; and

c) who must be treated as being the officers of the single entity for the purposes of this Act; and

d) the rules that must be treated as being the rules of the single entity for the purposes of this Act; and

e) the manner in which the duties or obligations imposed under this Act on charitable entities are to be complied with on behalf of the single entity and the entities that form part of that single entity; and

f) the information and documents that must be included in the register in relation to the single entity and the entities that form part of that single entity; and

g) the manner in which rights or powers conferred under this Act on a charitable entity may be exercised by the single entity.

1A If the duty under section 41 (duty to prepare annual return) is to be complied with by the parent entity in relation to the single entity, the terms and conditions under subsection (1) may provide that the financial statements that must accompany an annual return that is sent or delivered by the parent entity are prepared—

a) on a consolidated basis in respect of the single entity; or

b) separately in respect of each entity that forms part of the single entity.

1B The Board or the chief executive must, in deciding whether subsection (1A)(a) or (b) applies, take into account—

a) the needs of users of the financial statements; and

b) the purpose of this Act set out in section 3 .

1C If terms and conditions referred to in subsection (1A) relate to the financial statements of an entity, those terms and conditions must be treated as including a requirement for the financial statements to disclose, in the statement of accounting policies section, a brief description of the terms and conditions that apply under subsection (1A).

2 The Board or the chief executive must give written notice of those terms and conditions to the parent entity.

3 The Board or the chief executive may vary those terms and conditions by written notice to the parent entity.

4 If those terms and conditions provide that the duty under—

a) section 40 must be complied with by the parent entity in relation to the single entity on behalf of the single entity and all of the entities that form part of the single entity, the entities that form part of the single entity are not required to separately comply with that section:

b) section 41 must be complied with by the parent entity in relation to the single entity on behalf of the single entity and all of the entities that form part of the single entity, the entities that form part of the single entity are not required to separately comply with that section (but see subsection (1A)).

5 For the purposes of this Act, the single entity must be treated as—

a) having the name, officers, and rules referred to in subsection (1)(b) to (d); and

b) being qualified for registration as a charitable entity if all of the entities that form part of the single entity are qualified for registration as charitable entities.

6 This section is subject to section 45 .

History: Section 46 heading: amended, on 1 July 2012, by section 16(1) of the Charities Amendment Act (No 2) 2012 (2012 No 43).   Section 46(1): amended, on 1 July 2012, by section 16(1) of the Charities Amendment Act (No 2) 2012 (2012 No 43).     Section 46(1A): inserted, on 1 April 2015, by section 21(1) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).     Section 46(1B): inserted, on 1 April 2015, by section 21(1) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).     Section 46(1C): inserted, on 1 April 2015, by section 6 of the Charities Amendment Act 2014 (2014 No 63).     Section 46(2): amended, on 1 July 2012, by section 16(1) of the Charities Amendment Act (No 2) 2012 (2012 No 43).     Section 46(3): amended, on 1 July 2012, by section 16(1) of the Charities Amendment Act (No 2) 2012 (2012 No 43).     Section 46(4)(b): amended, on 1 April 2015, by section 21(2) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).