SACC001: TEO to supply information and report to the TEC

Type:
Condition

As specified in section 159YC(1) of the Education Act, it is a condition of a tertiary education organisation (TEO) receiving funding that the TEO will supply to the TEC, from time to time as required by the TEC, and in the form specified by the TEC, any financial, statistical, or other information that the TEC requires the TEO to supply.  

TEO to supply financial viability information to the TEC

The TEO must supply to the TEC information relating to the financial viability of the TEO, if the TEC notifies the TEO that the TEC requires that information. 

TEO to supply subcontracting information to the TEC

The TEO must supply to the TEC information about the TEO's subcontracting arrangements when the TEC requests that information.

TEO to supply information to the TEC in certain situations

The TEO must notify the TEC immediately if:

a)     any record required to be kept under section 159YD(1) of the Education Act has been lost or damaged; or

b)    the TEO is no longer able to comply with a condition of funding. 

PTE to supply information to the TEC in certain situations

This condition applies to a private training establishment (PTE). 

The PTE must notify the TEC immediately if:

a)    its New Zealand Qualifications Authority (NZQA) registration or accreditation is cancelled; or

b)    an Insolvency Event (see below) occurs in relation to it; or

c)    it has a Change of Control (see below); or

d)    it transfers (or agrees to transfer) all or a material part of its assets to a third party; or

e)    there is any change to the persons who make up its governing body; or

f)    it merges with or acquires any other entity or business;

g)    it has changed its name; or

h)    the location or locations at which it delivers a course or courses has changed.

Definition of Insolvency Event

"Insolvency Event" means, in relation to a PTE, the occurrence of any of the following events:

a)    that PTE ceases or threatens to cease to carry on all or any material part of its business or operations;

b)    an application is made (which is not withdrawn, stayed or dismissed within 10 Business Days of being made) to a court for an order, or an order is made, or an effective resolution is passed to place the PTE in liquidation or voluntary administration previously approved in writing by the TEC;

c)    that PTE proposes to enter into, any general assignment, arrangement, compromise or composition with or for the benefit of any of its creditors with a view to avoiding insolvency except as previously approved in writing by the TEC;

d)    an encumbrancer takes possession, or a trustee, receiver, receiver and manager, administrator, liquidator, provisional liquidator, inspector under any companies or securities legislation, or similar official, is appointed in respect of that PTE or the whole or any material part of its assets, or the board of directors request that a creditor or any other person appoint a receiver to that PTE);

e)    a distress, attachment or other execution is levied or enforced upon, or commenced against, any assets of that PTE and is not discharged or stayed within 10 Business Days, except, in each case, when the TEC is satisfied that that PTE is contesting the same in good faith by appropriate proceedings;

f)    that PTE is declared or becomes insolvent, is unable to pay its debts when they fall due, or is presumed unable to pay its debts in accordance with any applicable legislation;

g)    that PTE suspends or stops or threatens to suspend or stop payments generally or a moratorium is agreed or declared in respect of or affecting all or any material part of its indebtedness;

h)    that PTE seeks or obtains protection from its creditors under any statute or any other law;

i)    that PTE is declared to be a corporation at risk under the Corporations (Investigation and Management) Act 1989;

j)    a statutory or judicial manager is appointed over all or any of the assets of that person;

k)    any recommendation is made by the Financial Markets Authority to the Minister of the Crown who is responsible for administration of the Corporations (Investigation and Management) Act 1989 that that PTE or any associated person of that PTE be placed in statutory management under that Act;

l)    all of the directors of that PTE resign, or signal their intention to resign; or

m)    anything analogous or having a substantially similar effect to any of the events specified in paragraphs (a) to (m) above happens under the laws of any applicable jurisdiction in respect of that PTE;

Definition of Change of Control

"Change of Control" means, in relation to a person (the "first person"), when a person acquires Control of the first person or when a person who controls the first person ceases to do so.

"Control" means, in relation to a person (the "first person"), the ability of another person (the "second person") to ensure that the activities and business of the first person are conducted in accordance with the wishes of the second person, whether through ownership of voting shares, contract or otherwise.  Without limitation, the direct or indirect beneficial ownership of more than 50% of the voting rights in a body corporate is deemed to constitute Control.

  • Last changed: 29 March 2016
  • Last verified: 29 March 2016