Is RITA actually a legal entity? Well not as we know it.

[Chief Stipe]

What type of Organisation is RITA?  Well I'm no lawyer so if anyone out there can clarify for me - please do!

What I do know is what it ISN'T?

It ISN'T a Crown Entity that is governed by the Crown Entities Act;

It ISN'T a Publicly Listed Company that is governed by the Companies Act reporting to shareholders and the stock exchange;

It ISN'T a Private Company again governed by the Companies Act reporting to shareholders;

It ISN'T anything else that one might be accustomed to.

What does the Racing Act under which RITA was formed say it is (see extract from Act below)?

The Racing Act says it is a "body corporate" (Clause 7 (1) (a)).  So an entity created by statute i.e. a "statutory entity".  But here's the kicker - where are the checks and balances that normally govern other body corporates (corporations and companies) or statutory entities (Lotteries Commission)?

Does anyone know of any other organisation in New Zealand that is treated the same?  Is this a mistake and has RITA fallen between the cracks due to rushed legislative changes?

Another interesting clause in the Racing Act is 7 (2) (b) which states - RITA is a legal entity separate from its members, office holders, and employees, and the Crown.  Does that mean that unlike other organisations there is no final accountability?  For example if RITA did go into receivership does it mean that the Crown is absolved from any contracts formed by RITA and any debts?

 

Racing Act 2003 (amended 1 July 2019):

7 Continuation and renaming of Board

(1) The body called the New Zealand Racing Board—

(a) is continued; and

(b) is renamed the Racing Industry Transition Agency (the Agency).

(2) The Agency—

(a) is a body corporate; and

(b) is a legal entity separate from its members, office holders, and employees, and the Crown.

(3) The Agency has, both within and outside New Zealand,—

(a) full capacity to carry on or undertake any business or activity, do any act, or enter into any transaction; and

(b) for the purposes of paragraph (a), full rights, powers, and privileges.

(4) Subsection (3) applies subject to this Act, any other enactment, and the general law of New Zealand.

[Kopia]

Interesting. If it is a 'body corporate' can it have 'Board' Members?  Or Directors? I'd say not, and it is no accident by design. Directors and Board members can be held accountable in certain circumstances. . Peters would have structured it so some of his favourite people-like P Vela, and the original ' snout in the trough' Kristal McDoanld could't be acted against if found to be negligent. Sorry, should read 'when' found negligent, or useless.

[curious]

Just now, Kopia said:

Interesting. If it is a 'body corporate' can it have 'Board' Members?  Or Directors? I'd say not, and it is no accident by design. Directors and Board members can be held accountable in certain circumstances. . Peters would have structured it so some of his favourite people-like P Vela, and the original ' snout in the trough' Kristal McDoanld could't be acted against if found to be negligent. Sorry, should read 'when' found negligent, or useless.

They've already been found useless. The jury is still out on negligent but from here it looks probable.