Council Controlled Organisations - Exemptions

1.0    Purpose

To be able to grant an exemption to an organisation from the provisions for Council Controlled Organisations as specified in the Local Government Act 2002.

2.0    Background

An exemption can be made by resolution of the local authority after taking into account:

  • The nature and scope of the activities provided by the organisation; and
  • The costs and benefits, if an exemption is granted, to the local authority, the CCO and the community. (LGA Section 7(5))

An example the Council has is the AD Hally Trust which is a Council Controlled Organisation (CCO) because the Trustees are Councillors. Since 2003, the Council granted an exemption for the AD Hally Trust on the grounds that no Council funds are involved, and the Trust has a single focus of distributing funds from the AD Hally Trust in accordance with the Albert Daniel Hally Will.

3.0    Key Definitions

  • Council Controlled Organisation – an entity that is controlled, either directly or indirectly, by one or more local authorities.

4.0    Policy

That the Council will review all CCO’s on a three yearly cycle and exempt any from the status of a Council Controlled Organisation where the nature and scope of the activities provided by the organisation are minor and where it is considered that the costs outweigh the benefits to the CCO and the community.


Adopted Policy and Development Committee 28 July 2015