WATER ACT 2000 - SECT 678
Notice of suspected insolvency because of notice or direction
WATER ACT 2000 - SECT 678
Notice of suspected insolvency because of notice or direction
678 Notice of suspected insolvency because of notice or direction
(1) This section applies if—
(a) a water authority is given a notice about a
public sector policy (a
"public sector policy notice" ) or direction under this part; and
(b) the
authority suspects that it will or may become insolvent; and
(c) in the
authority’s opinion, the cause or a substantial cause of the suspected
insolvency would be compliance with the public sector policy notice or
direction.
(2) The authority must immediately give the Minister notice of the
suspicion and its reasons for the opinion.
(3) The notice must state that it
is given under this section.
(5) If the authority was given a public sector policy notice or a direction,
and the Minister is satisfied that the authority’s suspicion is
well-founded, the Minister must immediately—
(a) if the Minister is also
satisfied that the authority’s opinion is justified—revoke the
public sector policy notice or direction; and
(b) in any case—give the
authority the written directions the Minister considers necessary or
desirable, including any directions necessary or desirable to ensure—
(i)
the authority does not incur further debts; or
(ii) the authority will be
able to pay all its debts as and when they become due.
(6) Without limiting
subsection (5) , a direction under this section may require the authority to
stop or limit particular activities.
(7) The authority must comply with a
direction under this section.
(8) The Minister must publish a copy of the
direction in the gazette within 15 business days after it is given.
(9) This
section is in addition to, and does not limit, another provision of this Act
or another law.