Charities Amendment Bill
Government Bill
169—1
Explanatory note
General policy statement
The Charities Amendment Bill (the Bill) amends the Charities Act 2005 (the Charities Act). The Charities Act is administered by the Department of Internal Affairs.
The objective of the Bill is to make practical changes to support charities to continue their vital contribution to community well-being, while ensuring that that contribution is sufficiently transparent to interested parties and the public. The Bill does this by—
enabling simpler financial reporting from small charities to reduce the compliance burden:
improving access to justice for charities in the appeals process:
enhancing regulatory decision-making requirements, to further promote transparency and fairness:
clarifying the role of officers and supporting the governance of charities; and
improving regulatory compliance and enforcement tools.
Context
The Charities Act provides a registration, reporting, and monitoring system for approximately 28,000 registered entities that carry out charitable purposes. The fundamental elements of the Charities Act (including the definition of charitable purpose) are considered sound and fit for purpose.
Registration as a charitable entity is voluntary. However, registration brings benefits to charities, including tax exemptions. The Charities Act aims to promote public trust and confidence in charitable entities and promote the effective use of charitable resources.
Charitable entities can be other types of entities including charitable trusts, companies, societies, and unincorporated bodies. Therefore, charities can also be governed by other legislation such as the Charitable Trusts Act 1957, the Trusts Act 2019, the Companies Act 1993, and the Incorporated Societies Act 2022.
Why change is needed
The Charities Act has been in place for nearly 20 years. Work to modernise the Charities Act was prompted by changes in the wider operating environment for charities, feedback from the charitable sector, relatively low and decreasing rates of compliance with the Charities Act, and changes to other legislation that charities need to comply with.
In 2012, the Charities Commission was disestablished and the regulatory functions under the Charities Act were split between 2 bodies — Te Rātā Atawhai, the independent Charities Registration Board (the Board), and the chief executive of Te Tari Taiwhenua Department of Internal Affairs (the chief executive, the Department). In practice, the chief executive delegates to Charities Services, a business group within the Department. Some parts of the charitable sector have a poor perception of the regulator. These stakeholders have advocated for improvements to the regulator’s structure, accountability, transparency, and decision-making processes.
In 2015, new financial reporting standards for charities were introduced. Smaller charities have raised that the issue that those reporting standards create a high compliance burden. Over time, the rates of compliance with annual return filing have declined.
The wider legislative environment for charities has also changed. For example, there have been changes to the Trusts Act 2019, the new Incorporated Societies Act 2022 has been enacted, and there are more rigorous health and safety obligations on charities to protect their employees and volunteers. That environment has highlighted the challenges that officers face with the governing of charities.
Changes made by the Charities Amendment Bill
Financial reporting requirements for very small charities
A key part of the Charities Act is the obligation for all registered charities to report annually on their finances and activities. Financial statements must be prepared in accordance with not-for-profit reporting standards set by the External Reporting Board.
There are four tiers of reporting standards based on the annual expenditure of a charity. Charities with higher expenses are subject to more rigorous reporting, while small charities can provide simplified reports. Over half of registered charities report to tier four (under $140,000 annual operating payments). Compliance with this standard has been falling since the standards were introduced in 2015. Current reporting obligations for very small charities may be disproportionate to the level of transparency and accountability needed from those charities.
To address that problem, the Bill empowers the chief executive of the Department to exempt very small charities from the External Reporting Board’s reporting standards. An annual return provided to the chief executive outlining minimum information will still be required for transparency. The minimum information required, which might include information such as income and expenditure information, will be prescribed by regulations. When considering whether to grant an exemption, the chief executive must have regard to the purposes of the Charities Act.
Charities that qualify for the exemption will be defined by financial thresholds set by regulations. That will provide greater flexibility to adjust the thresholds to changes, such as amendments to reporting standards. Regulations will be made on the recommendation of the Minister, who must have regard to the purposes of the Charities Act.
Very small charities are often volunteer-run and have limited resources. The new exemption power seeks to balance the compliance burden with the level of transparency and accountability required of those charities.
Regulatory decision-making
The Charities Act requires the Board and chief executive to comply with certain processes when exercising functions and powers under the Act. The Bill enhances these processes to align with best practice and improve transparency, fairness, and accountability of decision making.
The Bill expands the ability for entities to object to decisions made under the Charities Act. This includes expanding objection rights from deregistration decisions to other significant decisions, such as a decision to decline an application for registration or a decision not to withhold information from the register at the request of a charity. The new process also includes the ability for charities to be heard by the decision maker in person. The process aims to ensure natural justice is achieved for decision making that impacts charities.
The Bill expands the time for lodging objections and submitting information to the chief executive on administrative matters from 20 working days to 2 months, recognising that charities are often time poor. The Bill also requires the Board to publish all decline and deregistration decisions for transparency.
The Bill increases the number of Board members from 3 to 5, which aims to improve the Board’s diversity of backgrounds and experience and address potential quorum and conflict of interest issues.
The Bill also requires the chief executive to consult the charitable sector when developing significant guidance material, to ensure charities can participate in matters that affect them.
Appeals framework
The Bill empowers the Taxation Review Authority instead of the High Court to hear first instance appeals under the Charities Act. The Taxation Review Authority will be known as the Taxation and Charities Review Authority (the Authority) when hearing Charities Act appeals.
Appeal mechanisms are important — they encourage high-quality decision making and ensure that decisions are made in accordance with the law. Using the Authority will provide greater access to justice because the High Court setting can be legally complex, costly, and time-consuming for charities to follow.
The Authority is considered the most appropriate existing tribunal to hear Charities Act appeals given the historical connection between tax and charities law. Charitable status was previously determined by the Inland Revenue Department prior to the enactment of the Charities Act.
The High Court will remain as an appeal court for the Authority’s decisions. The Authority may refer a case to the High Court on questions of law or decide that the High Court should hear the appeal.
The Bill expands the range of appealable decisions to include some decisions of the chief executive as well as all decisions of the Board. This recognises that the chief executive makes some decisions that could have a significant impact on the charity, and therefore warrant appeal rights.
The current decisions that can be appealed include Board decisions about deregistration, disqualification of an officer, declined applications, publishing possible breaches of the Charities Act, and serious wrongdoing by charities or officers. The Bill maintains this position and provides appeal rights for decisions of the chief executive about withholding information or documents from the register, changing balance dates for reporting, exemptions from compliance requirements, and treating 1 or more charitable entities as a single entity. Those are the same decisions that can also be objected to under the objections process.
The Bill increases the time for lodging an appeal to 2 months, and charities can self-represent before the Authority, potentially reducing their legal costs.
The Bill makes some consequential amendments to the Taxation Review Authorities Act 1994 to enable the changes above. Regulations will also be made to cover procedural matters relating to the appeals process.
The decision-making and appeals framework
A summary of the Bill’s objections and appeals process is outlined as follows—
the decision maker (the Board or the chief executive) intends to make a decision:
the entity or officer receives notice of the intended decision:
the entity or officer has 2 months to object to the intended decision:
if no objection is received, the decision automatically becomes final after 2 months:
if an objection is received, the entity or officer will make submissions, and can be heard by the decision maker in person if requested:
the decision maker considers the objection and makes a final decision:
the entity or officer receives notice of the final decision:
the decision takes effect the day after the date of the final decision notice, or a later date if specified in the notice:
the entity or officer has 2 months to appeal the final decision to the Authority (or longer if the Authority allows):
the Authority hears the appeal and make a decision:
the entity or officer has 20 working days to appeal the Authority’s decision to the High Court (or longer if the High Court allows).
Requirements for officers and governance of charities
While the Charities Act primarily focuses on the charitable entity, officers are subject to some regulation under the Charities Act and have the important role of running the charity.
The Department heard through stakeholder engagement that officers are not always clear about their role in the charity. The Bill clarifies that the role of an officer is to support the charity to deliver its charitable purpose and comply with obligations under the Charities Act.
The Bill amends the definition of officer to include people with significant influence over the management or administration of the entity. That ensures that people with influence over decision making and direction of the charity are defined as officers.
The Bill disqualifies people with a conviction relating to the financing of terrorism from holding officer roles in charities. This change is designed to mitigate the risk to the financial operation of the charity and align with international best practice.
The Bill also requires at least 1 officer of a charity to be 18 years old or over. That change will create legislative consistency with comparable legislation such as the Companies Act 1993 and Trusts Act 2019 (where directors or trustees must be at least 18 years old). The remaining officers of a charity can be 16 or 17 years of age to allow young people to continue to contribute to charitable work by holding officer roles.
Finally, the Bill requires charities to review their rules document or governance procedures annually. This change will help to ensure that charities are actively considering whether their resources are being used to meet their charitable purpose and to ensure that their governance processes are up to date, to promote good governance practices. Reviewing governance procedures will therefore include checking whether policies and processes relating to financial management, conflicts of interest, and officer appointments are still appropriate.
Regulatory compliance and enforcement tools
Compliance and enforcement actions are important for achieving the purposes of the Charities Act. Education and assistance to meet obligations is generally the first and most widely used step in regulatory compliance. However, a wide range of tools is important to address issues such as no longer qualifying for registration or a breach of the Charities Act, and to address serious wrongdoing. The Bill makes several changes to improve the regulator’s compliance and enforcement functions.
The Bill makes explicit the currently implicit obligations for charities to remain qualified for registration (charities must maintain charitable purposes, have qualified persons as officers, and maintain a rules document). That aims to improve clarity and ease of compliance with the Charities Act. It does not introduce new obligations.
The Bill also clarifies part of the definition of serious wrongdoing to be an act, omission, or course of conduct punishable by 2 or more years of imprisonment. That part of the current definition only refers to an offence, which would include low level infringement offences that are not consistent with the policy intent. The Bill aims to achieve a consistent level of seriousness for serious wrongdoing. The remaining parts of the definition are unchanged.
At present, the Charities Act only allows the Board to make an order disqualifying an officer from being involved in a charity when deregistering the charity. Deregistering a charity can be disruptive when the wrongdoing may have been made by 1 or more officers. The Bill gives the Board discretion to disqualify an officer at any time if that officer has engaged in serious wrongdoing or significantly or persistently fails to meet their obligations under the Charities Act. This new power enables enforcement to better target who is responsible and is in the best position to change behaviour.
Other changes
The Bill also makes several minor and technical changes to ensure that the Charities Act is fit for purpose.
Departmental disclosure statement
The Department of Internal Affairs is required to prepare a disclosure statement to assist with the scrutiny of this Bill. The disclosure statement provides access to information about the policy development of the Bill and identifies any significant or unusual legislative features of the Bill.
A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2022&no=169
Regulatory impact statement
The Department of Internal Affairs produced a regulatory impact statement on 2 June 2022 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.
A copy of this regulatory impact statement can be found at—
Clause by clause analysis
Clause 1 is the Title clause.
Clause 2 is the commencement clause. Clauses 4, 6, 7, 8, 10, 11, 12, 15, 16, 17, 20, 35, and 36 come into force 3 months after the date on which this Bill receives the Royal assent. Clauses 21, 22, 23, 26, 27, 31, 32, 33, and 34 come into force 12 months after the date on which this Bill receives the Royal assent. The rest of this Bill comes into force on the day after the date on which it receives the Royal assent.
Part 1Amendments to Charities Act 2005
Clause 3 provides that Part 1 amends the Charities Act 2005 (the Charities Act).
Clause 4 amends section 4 of the Charities Act, which is the interpretation section. The amendments—
extend the existing definition of officer to include a person who is able to exercise significant influence over the management or administration of a charitable entity:
amend the definition of serious wrongdoing to refer to an act, omission, or course of conduct that constitutes an offence punishable by imprisonment for a term of 2 years or more. Previously, the definition described various types of offending that constituted serious wrongdoing:
insert a new definition of Taxation and Charities Review Authority, which will hear appeals under the Charities Act (the Authority).
Clause 5 amends section 8 to increase the membership of the Charities Registration Board (the Board) from 3 members to 5.
Clause 6 inserts new section 12A, which requires the chief executive of the Department of Internal Affairs (the chief executive) to consult persons or organisations that the chief executive considers to be representative of the interests of charitable entities before issuing significant guidelines or recommendations on the best practice to be observed by charities and persons concerned with the management or administration of charities.
Clause 7 amends section 13, which sets out the circumstances in which an entity qualifies for registration as a charitable entity. Two new requirements for qualification are included. First, all officers of the entity must be qualified to be officers. Second, at any time, at least 1 officer of the entity must be 18 years or older.
Clause 8 inserts new section 13A, which requires a charitable entity to remain qualified for registration as a charitable entity at all times. New subsection (2) sets out the requirements a charity must meet to remain qualified for registration. A charity that does not remain qualified for registration may face removal from the register under section 31.
Clause 9 consequentially amends section 15 to clarify that the Board is exercising a decision-making power under section 15(e) for the purposes of the objections process set out in new sections 55B to 55E (inserted by clause 23).
Clause 10 repeals section 16, which relates to the qualifications of officers of charitable entities. These matters are now addressed in new section 36B (inserted by clause 17).
Clause 11 amends section 18, which relates to the chief executive’s consideration of an application for registration as a charitable entity. The chief executive must give the applicant notice of any matter that might result in application for registration being declined. The amendment extends the time in which the applicant has to respond to that notice from 20 working days to 2 months after the date of the notice.
Clause 12 amends section 19, which relates to the Board’s decision on application for registration as a charitable entity. Section 19(4) is repealed, as that process is superseded by the new objections process in new sections 55B to 55E (inserted by clause 23). New subsection (6) requires the Board to publish a decline decision, and the reasons for the decision, online.
Clause 13 amends section 24, which relates to the contents of the register. The amendment provides that the register may contain any other information or documents provided by a charitable entity that support the purpose of the register (which is set out in section 22).
Clause 14 amends section 26 to allow the register to be amended to correct a mistake caused by any error or omission on the part of a charitable entity that the chief executive is satisfied was an honest and genuine mistake or omission.
Clause 15 amends section 31, which relates to deregistration of charitable entities. The amendments—
provide that the chief executive may recommend to the Board that a charity be deregistered if there are grounds under section 32:
require the Board to publish deregistration notices and officer disqualification orders online.
Clause 16 repeals sections 33 to 36, which provide for a process for an entity to object to intended deregistration decisions. This process is superseded by the new objections process in new sections 55B to 55E (as inserted by clause 23).
Clause 17 inserts new subpart 1A into Part 2. New subpart 1A relates to officers of charitable entities. New section 36A sets out the role of an officer of a charitable entity, which is to assist the entity to deliver its charitable purpose and to comply with its statutory obligations. New section 36B deals with the qualifications of officers, and provides a list of disqualifying factors. New section 36C provides the grounds on which the Board may disqualify an officer, and requires the Board to publish disqualification decisions online. New section 36D sets out the effect of a disqualification for the disqualified officer and the charitable entity. Importantly, disqualification of an officer does not, unless otherwise provided for, affect the disqualified officer’s role or functions under any other Act or rule of law.
Clause 18 amends clause 41, which relates to a charitable entity’s duty to prepare an annual return. Paragraph (b)(i) is consequentially amended as a result of new section 42AB (which enables the chief executive to exempt charitable entities from providing financial statements). New paragraph (b)(ii) clarifies that an annual return must be accompanied by the prescribed fee, if any.
Clause 19 inserts new sections 42AB and 42AC. Those sections enable the chief executive to exempt classes of qualifying charitable entities from providing financial statements. A qualifying charitable entity is a charitable entity whose total assets and operating expenditure remain below the maximum financial threshold prescribed by regulations. Those regulations can only be made on the recommendation of the Minister, who must take into account the purposes of the Act. The chief executive may exempt a class of qualifying financial entity from providing financial statements, and these entitities are instead required to provide minimum financial information. Minimum financial information is a term that will be defined by regulations. Regulations made under new section 42AB, and exemptions granted under new section 42AC, are secondary legislation.
Clause 20 inserts new section 42G. New section 42G creates a duty for a charitable entity to review its governance procedures annually. When conducting that review, a charitable entity must consider whether its governance procedures are current, support the charitable entity to achieve its charitable purpose, and support the charity to comply with the requirements of the Charities Act.
Clause 21 repeals section 49. This is a consequential amendment that relates to the new objections process in new sections 55B to 55E (as inserted by clause 23).
Clause 22 repeals section 55(3). This is a consequential amendment that relates to the new objections process in new sections 55B to 55E (as inserted by clause 23).
Clause 23 inserts new sections 55A to 55E. New sections 55A to 55E establish a process for a person or entity to object to any Board decisions and certain decisions of the chief executive under the Charities Act. This process is similar to the former process for objections to deregistration decisions. New section 55A defines the terms decision and decision maker. New section 55B requires a decision maker to give notice of their intention to make a decision. New section 55C gives the person or entity who is the subject of the intended decision the right to object on certain grounds. New section 55D sets out the process to be followed by the decision maker if an objection is received (including giving the person or entity the opportunity to appear, whether in person or by electronic means, and be heard). That section also establishes the right to appeal against the decision to the Authority under new section 58A (as inserted by clause 26). New section 55E requires the decision maker, when making a decision, to observe the rules of natural justice.
Clause 24 amends section 56, which relates to notices. The amendments enable the Board and persons authorised by the Board to give notices. Previously, only the chief executive and persons authorised by the chief executive could give notices.
Clause 25 amends section 57, which relates to the service of notices. Subsections (1) and (3)(b) are consequentially amended in light of the amendment to section 56. New subsection (1)(d) enables notices to be served in an electronic form and by means of electronic communication. This drafting is aligned with the approach in the Contracts and Commercial Law Act 2017.
Clause 26 inserts new Part 2A, which relates to appeals under the Charities Act. Previously, appeals were to the High Court. Now, they are to the Taxation Review Authority, which will be known as the Taxation and Charities Review Authority (the Authority) when it considers Charities Act appeals. There is a further right of appeal to the High Court. New Part 2A establishes the right to appeal to the Authority, and the procedures that apply to appeals. These are broadly similar to the procedures that apply under the Taxation Review Authorities Act 1994.
New section 58A sets out the decisions against which a person may appeal to the Authority. These are the same decisions against which a person may first object under new section 55A. An appeal does not operate as a stay of the decision.
New sections 58B to 58D deal with procedural aspects such as the time for bringing an appeal, the documents that are to be filed by the appellant and respondent, and the burden of proof.
New section 58F gives the Authority the power to strike out meritless or vexatious appeals.
New sections 58G to 58M deal with the procedure for appeals. An Authority may regulate its own procedures (new section 58G), receive evidence and take evidence on oath (new section 58I), determine an appeal on the papers (new section 58J), proceed with an appeal in the absence of any party (new section 58K), and conduct its sittings electronically if it considers it appropriate (new section 58L). An Authority may sit to hear appeals at times and locations that the Authority considers appropriate, having regard to the location and convenience of the parties (new section 58M). All sittings of an Authority are open to the public, unless the Authority considers that a sitting should be conducted in private (new section 58M).
New section 58N sets out the Authority’s powers on appeal, which are to confirm, modify, or reverse the decision being appealed against, to exercise any of the powers that the Board or chief executive could have exercised, and to make any other order, on any terms and conditions. New section 58O requires the Authority to give its decisions in writing and to include reasons. An Authority must also publish its decisions online, but may choose to withhold information from publication. An Authority may award costs (limited to the amount of the filing fee to bring the appeal) to a successful appellant (new section 58P).
New section 58Q enables an Authority to makes interim orders pending determination of an appeal. If an Authority refuses to make an interim order, the person who applied for the order may appeal under new section 58R.
New section 58S makes it an offence to act in contempt of an Authority. A person who commits an offence is liable on conviction to a fine of up to $1,000.
New section 58T applies the District Court Rules 2014 to proceedings in an Authority, to the extent that those rules are not inconsistent with the Charities Act or regulations made under the Charities Act. New section 58U enables all Authorities acting together to issue practice notes.
New section 58V requires the Authority to notify the Attorney-General of the bringing of any appeal to the Authority.
New section 58W establishes a right to appeal decisions of the Authority to the High Court.
New section 58X enables the Authority to state a case for the High Court on any question of law, or on whether the appeal should be heard by the High Court.
Clause 27 repeals sections 59 to 61. These are consequential amendments that relate to the insertion of new Part 2A by clause 26.
Clause 28 amends section 73, which contains a regulation-making power. The amendments insert a power for regulations to be made to provide the procedure for appeals (new subsection (1)(g)), and modernise language relating to other regulation-making powers (new subsections (1)(j) and (k)).
Clause 29 and the Schedule insert new Part 2, containing transitional provisions, into Schedule 1AA of the Charities Act. The effect of the transitional provisions is that the previous law will continue to apply to—
applications for registration under section 17 made before this Bill commences; and
any process for the removal of an entity from the register where the chief executive has issued a notice under section 33 before this Bill commences.
Clause 30 amends clause 2 of Schedule 2. This is related to the amendment made by clause 5, which increases the size of the Board.
Part 2Consequential amendments
Clauses 31 to 34 consequentially amend the Taxation Review Authorities Act 1994. The amendments are related to the amendments made by clause 26, which inserts new Part 2A containing the new appeals process.
Clauses 35 and 36 consequentially amend the Incorporated Societies Act 2022. The amendment relates to the amendments made by clause 17.
Hon Priyanca Radhakrishnan
Charities Amendment Bill
Government Bill
169—1
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Charities Amendment Act 2022.
2 Commencement
(1)
Sections 4, 6, 7, 8, 10, 11, 12, 15, 16, 17, 20, 35, and 36 come into force 3 months after the date on which this Act receives the Royal assent.
(2)
Sections 21, 22, 23, 26, 27, 31, 32, 33, and 34 come into force 12 months after the date on which this Act receives the Royal assent.
(3)
The rest of this Act comes into force on the day after the date on which it receives the Royal assent.
Part 1 Amendments to Charities Act 2005
3 Principal Act
This Part amends the Charities Act 2005.
4 Section 4 amended (Interpretation)
(1)
In section 4(1), replace the definition of officer with:
officer, in relation to a charitable entity,—
(a)
means a person who is able to exercise significant influence over the management or administration of the entity:
(b)
includes, but is not limited to,—
(i)
in relation to the trustees of a trust, any of those trustees:
(ii)
in relation to any other entity, a member of the board or governing body of the entity if it has a board or governing body:
(c)
excludes any class or classes of persons that are declared by regulations not to be officers for the purposes of this Act
(2)
In section 4(1), definition of serious wrongdoing, replace paragraph (c) with:
(c)
an act, omission, or course of conduct that constitutes an offence punishable by imprisonment for a term of 2 years or more; or
(3)
In section 4(1), insert in its appropriate alphabetical order:
Taxation and Charities Review Authority, or Authority, means an Authority established or deemed to be established under the Taxation Review Authorities Act 1994
5 Section 8 amended (Establishment, functions, duties, and powers of Board)
In section 8(1), replace “3”
with “5”
.
6 New section 12A inserted (Chief executive to consult on significant guidelines or recommendations)
After section 12, insert:
12A Chief executive to consult on significant guidelines or recommendations
The chief executive must consult persons or organisations that the chief executive considers to be representative of the interests of charitable entities before issuing significant guidelines or recommendations on the best practice to be observed by charities and persons concerned with the management or administration of charities.
7 Section 13 amended (Essential requirements)
Replace section 13(1)(d) with:
(d)
all of the officers of the entity are qualified to be officers of a charitable entity under sections 31(4), 36B, and 36C; and
(e)
at any time, at least 1 officer of the entity is 18 years or older.
8 New section 13A inserted (Charitable entity to remain qualified for registration)
After section 13, insert:
13A Charitable entity to remain qualified for registration
(1)
Every charitable entity must remain qualified for registration as a charitable entity at all times.
(2)
To remain qualified for registration, a charitable entity must—
(a)
in the case of the trustees of a trust, remain of a kind in relation to which an amount of income is derived by the trustees in trust for charitable purposes:
(b)
in the case of a society or an institution,—
(i)
be maintained exclusively for charitable purposes; and
(ii)
not be carried on for the private pecuniary profit of any individual:
(c)
have as its officers only persons qualified to be officers of a charitable entity under sections 31(4), 36B, and 36C:
(d)
have and maintain rules.
9 Section 15 amended (Name of entity)
In section 15(e), replace “in the opinion of the Board, the name is not”
with “if the Board decides that the name is not”
.
10 Section 16 repealed (Qualifications of officers of charitable entities)
Repeal section 16.
11 Section 18 amended (Chief executive to consider application)
(1)
In section 18(3)(c)(ii), replace “20 working days”
with “2 months”
.
(2)
In section 18(3A)(a), replace “20 working days”
with “2 months”
.
12 Section 19 amended (Board to decide application for registration)
(1)
Repeal subsection (4).
(2)
In subsection (5), replace “acting under subsection (4)”
with “declining an application under this section”
.
(3)
After subsection (5), insert:
(6)
If the Board declines an application under this section, it must, as soon as practicable, publish its decision and the reasons for it on a publicly accessible Internet site maintained by or on behalf of the Board.
13 Section 24 amended (Contents of register)
After section 24(2), insert:
(2A)
The register may contain any other information or documents provided by a charitable entity that support the purpose of the register.
14 Section 26 amended (Amendments to register)
After section 26(b), insert:
(ba)
to correct a mistake caused by any error or omission on the part of a charitable entity that the chief executive is satisfied was an honest and genuine mistake or omission; or
15 Section 31 amended (Deregistration of charitable entity from register)
(1)
After section 31(1), insert:
(1A)
The chief executive may recommend to the Board that an entity be deregistered as a charitable entity if the chief executive is satisfied that there are grounds under section 32 for the charity to be removed from the register.
(2)
Replace section 31(4) with:
(4)
The Board may, if it has removed an entity from the register, make an order that an application for the re-registration of the entity as a charitable entity must not be made before the expiry of a specified period.
(3)
After section 31(4), insert:
(5)
If the Board directs a notice under section 31(2)(a) to be registered, it must, as soon as practicable, publish the following on a publicly accessible Internet site maintained by or on behalf of the Board:
(a)
the notice; and
(b)
the reasons for the notice; and
(c)
any order made under section 31(4).
16 Sections 33 to 36 repealed
Repeal sections 33 to 36.
17 New subpart 1A of Part 2 inserted
After section 36, insert:
Subpart 1A—Officers of charitable entities
36A Role of officer of charitable entity
The role of an officer of a charitable entity includes assisting the entity to—
(a)
deliver its charitable purpose; and
(b)
comply with its obligations under this Act or any other enactment.
36B Qualifications of officers of charitable entities
(1)
A person who is not disqualified by this section or section 36C is qualified to be an officer of a charitable entity.
(2)
The following persons are disqualified from being officers of charitable entities:
(a)
an individual who is an undischarged bankrupt:
(b)
an individual who is under the age of 16 years:
(c)
an individual who, or a body corporate that, has been convicted of either of the following and has been sentenced for the offence within the last 7 years:
(i)
a crime involving dishonesty (within the meaning of section 2(1) of the Crimes Act 1961):
(ii)
an offence under section 143B of the Tax Administration Act 1994:
(d)
an individual who is prohibited from being a director or promoter of, or being concerned or taking part in the management of, an incorporated or unincorporated body under the Companies Act 1993, the Financial Markets Conduct Act 2013, or the Takeovers Act 1993:
(e)
an individual who is subject to a banning order under subpart 7 of Part 4 of the Incorporated Societies Act 2022:
(f)
an individual who is subject to a property order made under the Protection of Personal and Property Rights Act 1988, or whose property is managed by a trustee corporation under section 32 of that Act:
(g)
a body corporate that is being wound up, is in liquidation or receivership, or is subject to statutory management under the Corporations (Investigation and Management) Act 1989:
(h)
an individual who has been convicted of an offence relating to the financing of terrorism under the Terrorism Suppression Act 2002, whether in New Zealand or elsewhere:
(i)
in relation to any particular entity, an individual who, or a body corporate that, does not comply with any qualifications for officers contained in the rules of that entity.
(3)
Subsection (2) does not apply to an officer of an entity if that officer was appointed, under an Act, by the Governor-General, by the Governor-General in Council, or by a Minister.
(4)
The Board may waive the application of any of the disqualifying factors set out in subsection (2)(a) to (h) in relation to an officer of that entity.
(5)
The waiver may be granted on any terms or conditions that the Board thinks fit.
(6)
If the Board waives the application of a disqualifying factor set out in subsection (2)(a) to (h), the officer to whom the waiver relates must not be treated as being disqualified from being an officer of a charitable entity in relation to the entity by reason of the application of that disqualifying factor.
(7)
If the Board decides to exercise a power under subsection (4), it must direct the chief executive to give the charitable entity written notice of the decision.
36C Board may disqualify officer
(1)
The Board may, by notice, disqualify an officer of a charitable entity for a specified period that does not exceed 5 years if—
(a)
the officer has engaged in serious wrongdoing in connection with the entity; or
(b)
the officer has failed significantly or persistently to meet their obligations under this Act or any other enactment.
(2)
As soon as practicable after issuing a notice under this section, the Board must publish the notice on a publicly accessible Internet site maintained by or on behalf of the Board.
(3)
In this section and section 36D, an officer of a charitable entity includes a person who was an officer of an entity that has been deregistered as a charitable entity under section 31.
36D Effect of disqualification of officer
(1)
A person disqualified from being an officer of a charitable entity under section 36B or 36C may not be an officer of any charitable entity while they are disqualified.
(2)
Disqualification of an officer of a charitable entity under section 36B or 36C does not, unless otherwise provided for, affect the disqualified officer’s role or functions under any other Act or rule of law.
18 Section 41 amended (Duty to prepare annual return)
Replace section 41(2)(b) with:
(b)
be accompanied by—
(i)
a copy of the financial statements of the charitable entity (or, in the case of section 46(1A)(b), of each entity that forms part of the single entity) for the most recently completed accounting period (unless an exemption under section 42AC(1) applies); and
(ii)
the fee prescribed by regulations for the application (if any).
19 New sections 42AB and 42AC inserted
After section 42A, insert:
42AB Meaning of minimum financial information and qualifying financial entity
(1)
In this section and section 42AC,—
minimum financial information means financial information prescribed by regulations, and may include information about a charitable entity’s income, expenditure, assets, liabilities, mortgages, charges, other security interests, related party transactions, and donations
qualifying charitable entity means a charitable entity whose total assets and total operating expenditure both remain at all times below the maximum financial thresholds prescribed by regulations made on the recommendation of the Minister
(2)
Before recommending the making of regulations prescribing maximum financial thresholds for the purposes of the definition of qualifying charitable entity in subsection (1), the Minister must have regard to the purpose of this Act.
(3)
Regulations made under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
42AC Chief executive may exempt class of qualifying charitable entities from providing financial statements
(1)
The chief executive may, by notice, exempt a class of qualifying charitable entities from complying with section 41(2)(b).
(2)
Before granting an exemption under subsection (1), the chief executive must have regard to the purpose of this Act.
(3)
A qualifying charitable entity that is exempt from complying with section 41(2)(b) must, when it sends or delivers its annual return to the chief executive, report to the chief executive in the form (if any) prescribed by the chief executive on its minimum financial information.
(4)
An exemption granted under subsection (1) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
20 New section 42G and cross-heading inserted
After section 42F, insert:
Duty to review governance procedures
42G Duty to review governance procedures
(1)
A charitable entity must review its governance procedures (whether those are set out in its rules or elsewhere) annually.
(2)
When conducting a review under subsection (1), the charitable entity must consider whether its governance procedures—
(a)
are current; and
(b)
assist the charitable entity to achieve its charitable purpose; and
(c)
assist the charitable entity to comply with the requirements of this Act.
21 Section 49 repealed (Board to observe rules of natural justice)
Repeal section 49.
22 Section 55 amended (Board may publish details of possible breach, possible serious wrongdoing, and other matters)
Repeal section 55(3).
23 New sections 55A to 55E and cross-heading inserted
After section 55, insert:
Objections to decisions of Board and chief executive
55A Interpretation
In sections 55B to 55E,—
decision means—
(a)
the following decisions of the chief executive:
(i)
a decision under section 25(1) to remove or omit from the register any information or documents that relate to a charitable entity:
(ii)
a decision on an application by an entity for approval to change its balance date under section 41(5)(b):
(iii)
a decision on an application by an entity under section 43 to grant, vary, or revoke an exemption:
(iv)
a decision on a request by an entity under section 44(1) to treat the entity and 1 or more affiliated or closely related entities as forming part of a single entity; and
(b)
any decision of the Board under this Act
decision maker means the Board or chief executive, whichever applies.
55B Notice of intention to make decision
(1)
Before the decision maker makes a decision, they must give notice of the matters set out in subsection (2) to the person who or entity that is the subject of the decision.
(2)
That notice must specify—
(a)
the name of the person or entity; and
(b)
where relevant, the registration number of the entity; and
(c)
the decision that the decision maker intends to make; and
(d)
the grounds under this Act for the intended decision; and
(e)
the date by which an objection to the intended decision must be received by the decision maker, which must be no later than 2 months after the date of the notice.
55C Objection to intended decision
The person who or entity that is the subject of the intended decision may send or deliver to the decision maker an objection to the intended decision on either or both of the following grounds:
(a)
that the grounds for the intended decision have not been satisfied:
(b)
that, for any other reason, it would not be in the public interest to make the intended decision.
55D Decision maker’s duty if objection received
(1)
If an objection to an intended decision is received by the decision maker on or before the date referred to in section 55B(2)(e),—
(a)
the decision maker must give the person or entity the opportunity to appear (whether in person or by electronic means) and be heard in relation to the intended decision and the objection; and
(b)
the decision maker must not proceed to make the intended decision unless they are satisfied that it is in the public interest to do so and that—
(i)
the grounds for the intended decision have been satisfied; or
(ii)
the objection has been withdrawn; or
(iii)
any facts on which the objection is based are not, or are no longer, correct; or
(iv)
the objection is frivolous or vexatious.
(2)
If the decision maker proceeds to make a decision, the decision maker must give to the person or entity notice of—
(a)
the decision; and
(b)
the grounds for the decision; and
(c)
the person or entity’s right to appeal against the decision under section 58A.
(3)
The decision takes effect the day after the date of the notice referred to in subsection (2), unless another date (which may not be earlier than the date of the notice) is specified in the notice.
55E Decision maker to observe rules of natural justice
In considering whether to make a decision, the decision maker must observe the rules of natural justice.
24 Section 56 amended (Notices)
(1)
In section 56(1), delete “by the chief executive”
.
(2)
Replace section 56(1)(b) with:
(b)
it is signed by a member of the Board, the chief executive, or a person authorised by the Board or the chief executive for the purpose; and
(3)
In section 56(2), replace “the chief executive”
with “a member of the Board or the chief executive”
.
25 Section 57 amended (Service of notices)
(1)
In section 57, replace “chief executive”
with “Board or the chief executive”
in each place.
(2)
After section 57(1)(c), insert:
(d)
serving or giving the information in electronic form and by means of an electronic communication.
26 New Part 2A inserted
After section 58, insert:
Part 2A Appeals
Appeals to Authority
58A Right of appeal to Authority against decisions of Board and certain decisions of chief executive
(1)
A person may appeal to an Authority against—
(a)
the following decisions of the chief executive:
(i)
a decision under section 25(1) to remove or omit from the register any information or documents that relate to a charitable entity:
(ii)
a decision on an application by an entity for approval to change its balance date under section 41(5)(b):
(iii)
a decision on an application by an entity under section 43 to grant, vary, or revoke an exemption:
(iv)
a decision on a request by an entity under section 44(1) to treat the entity and 1 or more affiliated or closely related entities as forming part of a single entity; and
(b)
any decision of the Board under this Act.
(2)
An appeal does not operate as a stay of the decision appealed against.
58B Period for bringing appeal
(1)
An appellant must lodge an appeal under section 58A with the Authority—
(a)
no later than 2 months after the date of the decision appealed against; or
(b)
within any further time that the Authority may allow if, on an application by the appellant, the Authority is satisfied that exceptional grounds outside the appellant’s control prevented the appellant from lodging an appeal before the expiry of the period in paragraph (a).
(2)
An appellant may make an application under subsection (1)(b) at any time before or after the expiry of the period in subsection (1)(a).
58C Commencement of appeal
(1)
An appeal before an Authority must be commenced by filing a notice of appeal, together with the prescribed fee (if any), with the Authority.
(2)
A notice of appeal must be in a form approved by the chief executive of the Ministry of Justice after consulting all Authorities and any other parties the chief executive thinks appropriate.
(3)
Every notice of appeal must specify—
(a)
the decision or the part of the decision to which the appeal relates; and
(b)
the grounds of appeal in sufficient detail to fully inform the Authority and the respondent of the issues in the appeal; and
(c)
the relief sought; and
(d)
the appellant’s address for service (which can be an email address or any other electronic address maintained by the appellant).
(4)
The decision maker must be named as a respondent in the appeal.
(5)
The appellant must serve a notice of appeal on all parties to the appeal.
58D Notice of defence
(1)
A respondent must file a notice of defence with the Authority no later than 2 months after being served with the notice of appeal.
(2)
A notice of defence must be in a form approved by the chief executive of the Ministry of Justice after consulting all Authorities and any other parties the chief executive thinks appropriate.
(3)
A respondent must serve the notice of defence on the appellant at the appellant’s address for service.
(4)
Every notice of defence must specify—
(a)
the grounds of defence in sufficient detail to fully inform the Authority and the appellant of the defence; and
(b)
the respondent’s address for service (which can be an email address or other electronic address maintained by the respondent).
58E Grounds of appeal and burden of proof
(1)
In an appeal,—
(a)
the appellant is limited to the grounds stated in the notice of appeal; and
(b)
the burden of proof is on the appellant.
(2)
Despite subsection (1), the Authority may, either on the application of the appellant or of its own motion, amend the grounds stated in the notice of appeal.
58F Authority may strike out appeal
An Authority may strike out an appeal, in whole or in part, if satisfied that it—
(a)
discloses no reasonable cause of action; or
(b)
is likely to cause prejudice or delay; or
(c)
is frivolous or vexatious; or
(d)
is otherwise an abuse of process.
58G Authority may regulate its procedure
(1)
An Authority may regulate its procedure for the commencement, hearing, and determination of an appeal under this Act as it thinks fit, subject to—
(a)
this Act and any regulations; and
(b)
any practice notes issued under section 58U.
(2)
Regulations may prescribe any procedure to be followed by an Authority.
58H Procedure at hearing of appeal
At the hearing of an appeal before an Authority, the parties—
(a)
may call evidence; and
(b)
must be given an opportunity to be heard either in person or by a person they have authorised to represent them (whether or not that person is a lawyer).
58I Evidence
(1)
An Authority may receive as evidence any statement, document, information, or matter that the Authority considers may assist the Authority to deal effectively with the appeal, whether or not it would be admissible in a court of law.
(2)
Subject to sections 53 to 67 of the Evidence Act 2006, an Authority may require a respondent to provide to the Authority and all parties to the appeal any statement, document, information, or matter that the Authority considers to be relevant to the decision under appeal.
(3)
An Authority may take evidence on oath.
(4)
An Authority may permit a person appearing as a witness before it to give evidence by providing a written statement and, if the Authority thinks fit, verifying it by oath.
58J Determination on papers
(1)
An Authority may determine an appeal on the papers if the Authority considers it appropriate.
(2)
Before doing so, the Authority must give the parties an opportunity to comment on whether the appeal should be dealt with in that manner.
58K Power to proceed if party fails to attend
(1)
If any party fails to appear or be represented at the hearing of an appeal before an Authority, the Authority may—
(a)
adjourn the hearing; or
(b)
determine the appeal in the absence of the party who failed to appear or be represented; or
(c)
where it is the appellant who fails to appear or be represented, dismiss the appeal.
(2)
If an Authority determines or dismisses an appeal under subsection (1)(b) or (c) in the absence of any party, the Authority on the application of that party may, if the Authority thinks fit, grant a rehearing of the appeal or set down the dismissed appeal for a hearing.
(3)
An application for a rehearing or the setting down of a new hearing under subsection (2) must be made no later than 20 working days after the date of the Authority’s determination or dismissal of the appeal.
(4)
If a rehearing is granted or a new hearing set down under subsection (2), the determination of the Authority made on the initial hearing, or its dismissal of the appeal, shall immediately cease to have effect.
58L Use of electronic facilities
Any sitting of an Authority may be conducted by telephone, audiovisual link, or other remote access facility if an Authority considers it appropriate and the necessary facilities are available.
58M Sittings of Authority to hear appeals
(1)
An Authority may sit to hear appeals under this Act at the times and locations that the Authority considers appropriate.
(2)
When considering where an appeal should be heard, the Authority may take into account the location and convenience of the parties.
(3)
An Authority may adjourn a sitting before or at the the time of the sitting.
(4)
If an Authority is absent or unable from cause to act, the Registrar of the Authority has the same powers as the Authority to adjourn a sitting.
(5)
All sittings of an Authority are open to the public, unless the Authority considers that a sitting should be conducted in private.
58N Powers of Authority in determining appeals
(1)
In determining an appeal under section 58A, an Authority may—
(a)
confirm, modify, or reverse the decision of the Board or the chief executive or any part of the decision:
(b)
exercise any of the powers that the Board or the chief executive could have exercised in relation to the matter to which the appeal relates.
(2)
Without limiting subsection (1), the Authority may make an order requiring—
(a)
an entity to be registered in the register of charitable entities with effect from a specified date; or
(b)
an entity to be restored to the register of charitable entities with effect from a specified date; or
(c)
an entity to be removed from the register of charitable entities with effect from a specified date; or
(d)
an entity to remain registered in the register of charitable entities; or
(e)
an entity to be treated, or not to be treated, with 1 or more affiliated or closely related entities as forming part of a single entity; or
(f)
an entity to be exempted, or not to be exempted, from compliance requirements from a specified date; or
(g)
an entity to provide their annual return from a specified date; or
(h)
information or documents that relate to an entity to be removed or omitted from, inlcuded in, or restored to the register.
(3)
The specified date may be a date that is before or after the order is made.
(4)
The Authority may make any other order that it thinks fit.
(5)
An order may be made on any terms and conditions that the Authority thinks fit.
58O Decisions of Authority
(1)
An Authority must give any decision under this Act in writing, and include reasons for the decision.
(2)
As soon as practicable after giving a decision determining an appeal, an Authority must publish the decision and reasons for the decision on a publicly available internet site maintained by or on behalf of the chief executive of the Ministry of Justice.
(3)
Despite subsection (2),—
(a)
an Authority may withhold from publication information it considers appropriate (including, but not limited to, the name of the appellant or information that could identify the appellant); and
(b)
an Authority is not required to publish a decision and reasons for the decision if it considers publication would not be in the public interest.
58P Authority may award costs to successful appellant
(1)
An Authority may order the respondent to pay costs to a successful appellant.
(2)
The maximum amount of costs that may be awarded under subsection (1) is the amount of the filing fee to bring the appeal.
58Q Authority may make interim order pending determination of appeal
(1)
At any time before the final determination of an appeal under section 58A, an Authority may make an interim order requiring an entity—
(a)
to be registered in the register of charitable entities with effect from a specified date; or
(b)
to be restored to the register of charitable entities with effect from a specified date; or
(c)
to remain registered in the register of charitable entities.
(2)
The specified date may be a date that is before or after the order is made.
(3)
At any time before the final determination of an appeal relating to a decision under section 55, an Authority may make an interim order preventing or restricting the exercise of a power by the Board under that section.
(4)
An interim order may be subject to any terms or conditions that the Authority thinks fit.
(5)
If an interim order is made under subsection (1), the chief executive must—
(a)
amend the register of charitable entities in accordance with the order as soon as practicable after receiving the order; and
(b)
include a copy of the order in the register of charitable entities, unless the Authority orders otherwise.
(6)
To enable the chief executive to fulfil the duties imposed by this section, the Registrar of the Authority must send a copy of the order to the chief executive as soon as practicable.
58R Right of appeal against decision refusing interim order
If an Authority refuses to make an interim order under section 58Q, the person or persons who applied for the order may, within 1 month after the date of the refusal, appeal to the High Court against the decision.
58S Contempt of Authority
(1)
A person commits an offence if the person—
(a)
wilfully insults or obstructs an Authority or any witness or officer of an Authority during a sitting of the Authority or while the Authority, a witness, or an officer is going to, or returning from, a sitting of the Authority; or
(b)
wilfully insults or obstructs any person in attendance at a sitting of an Authority; or
(c)
wilfully interrupts, or otherwise misbehaves at, a sitting of an Authority; or
(d)
wilfully and without lawful excuse disobeys any order or direction of an Authority in the course of the hearing of any proceedings.
(2)
A person who commits an offence against subsection (1) is liable on conviction to a fine not exceeding $1,000.
(3)
An Authority may order the exclusion from a sitting of that Authority of any person whose behaviour, in the opinion of the Authority, constitutes an offence against subsection (1), whether or not the person is charged with the offence, and any officer of the Authority or constable may take any steps that are reasonably necessary to enforce the exclusion.
58T Application of District Court Rules 2014
To the extent that they are not inconsistent with this Act or regulations, the District Court Rules 2014 apply to the commencement, interlocutory steps, and conduct of proceedings in an Authority as if those proceedings were civil proceedings in the District Court.
58U Practice notes
(1)
All Authorities acting together may issue practice notes, to apply to all of them, in relation to appeals to an Authority under this Act.
(2)
The practice notes must not be inconsistent with this Act and are for the guidance of an Authority, officers of an Authority, and parties before an Authority.
58V Authority must notify Attorney-General of bringing of appeal
The Authority must notify the Attorney-General promptly of the bringing of any appeal to the Authority under this Act.
Appeals to High Court
58W Right of appeal to High Court
(1)
A party to an appeal under section 58A who is dissatisfied with the decision of an Authority under this Act on that appeal may appeal to the High Court.
(2)
Every appeal under subsection (1) must be made by filing a notice of appeal in the appropriate registry of the High Court within 20 working days after the date of the decision appealed against or within any further time that the High Court allows.
(3)
On any appeal under subsection (1), the High Court may make an order or a determination as it thinks fit.
(4)
Subject to this section, the procedure in respect of any appeal under this section must be in accordance with the rules of court.
Authority may state case
58X Authority may state case for High Court
(1)
An Authority may, at any time, on the application of any party to the appeal or of its own motion, state a case for the opinion of the High Court on—
(a)
any question of law arising in respect of an appeal before the Authority:
(b)
whether the appeal should be heard by the High Court.
(2)
An Authority must give notice to the parties of the Authority’s intention to state a case under this section specifying the registry of the High Court in which the case is to be filed.
27 Sections 59 to 61 repealed
Repeal sections 59 to 61 and the cross-heading above section 59.
28 Section 73 amended (Regulations)
(1)
Replace section 73(1)(g) with:
(g)
providing the procedure for appeals under this Act:
(h)
prescribing the fees to be paid in respect of the filing of an appeal to an Authority under this Act:
(i)
prescribing the circumstances in which any fees paid or to be paid in respect of the filing of an appeal under this Act may be refunded, remitted, or waived, in whole or in part:
(j)
providing for anything this Act says may or must be provided for by regulations:
(k)
providing for anything incidental that is necessary for carrying out, or giving full effect to, this Act.
(2)
In section 73(7), replace “chief executive”
with “Board or the chief executive”
.
29 Schedule 1AA amended
In Schedule 1AA,—
(a)
insert the Part set out in the Schedule of this Act as the last Part; and
(b)
make all necessary consequential amendments.
30 Schedule 2 amended
In Schedule 2, clause 2(1), replace “3”
with “5”
.
Part 2 Consequential amendments to other Acts
Amendments to Taxation Review Authorities Act 1994
31 Principal Act
Sections 31 to 34 amends the Taxation Review Authorities Act 1994.
32 Section 2 amended (Purpose of Act)
Replace section 2(1) with:
(1)
The purpose of this Act is to—
(a)
re-enact the law contained in the Inland Revenue Department Act 1974 as it relates to Taxation Review Authorities; and
(b)
provide that Taxation Review Authorities are to sit as a judicial authority for hearing and determining appeals under the Charities Act 2005.
33 Section 13 amended (Functions of an Authority)
In section 13, insert as subsection (2):
(2)
The functions of an Authority are also to sit as a judicial authority for hearing and determining appeals under the Charities Act 2005 (see sections 58A to 58X of that Act) in accordance with the provisions of that Act.
34 Section 13A amended (General jurisdiction of Authorities)
After section 13A(b), insert:
(c)
to hear and determine appeals under sections 58A to 58X of the Charities Act 2005.
Amendment to Incorporated Societies Act 2022
35 Principal Act
Section 36 amends the Incorporated Societies Act 2022.
36 Section 47 amended (Qualifications of officers)
In section 47(3)(d), replace “section 31(4)(b)”
with “sections 36B and 36C”
.
Schedule New Part 2 inserted into Schedule 1AA
s 29
Part 2 Provisions relating to Charities Amendment Act 2022
3 Interpretation
In clause 4,—
(a)
Amendment Act means the Charities Amendment Act 2022
(b)
principal Act means the Charities Act 2005.
4 Provisions relating to decisions of Board or chief executive
The principal Act, as in force before the commencement of this clause, continues to apply to the following as if the Amendment Act had not been enacted:
(a)
an application for registration under section 17 made before the commencement of this clause; and
(b)
any process for the removal of an entity from the register where the chief executive issued a notice under section 33 before the commencement of this clause.