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Limited Partnerships Act 2008

General - Prohibited and disqualified persons

103E: Additional power for Registrar or FMA to prohibit persons from being involved in management of limited partnerships

You could also call this:

"The government can stop someone from managing a limited partnership if they did something wrong."

Illustration for Limited Partnerships Act 2008

The Registrar or the FMA can stop you from being involved in a limited partnership's management. This can happen if a limited partnership was deregistered for certain reasons described in section 98A(1)(c), (d), (e), or (f). They will send you a written notice saying you cannot be a general partner or promoter of a limited partnership.

The Registrar or the FMA can decide to stop you from being involved for up to 10 years. They must publish the notice in the Gazette. This can happen if you were involved in the management of a limited partnership that was deregistered, and the Registrar or the FMA thinks you were partly responsible for it being deregistered.

Before the Registrar or the FMA makes a decision, they must give you at least 10 working days' notice and consider any representations you make. If you receive a notice, you cannot be a general partner or promoter of a limited partnership, or be involved in its management. If you appeal against the notice, it remains in force until the appeal is decided.

The Registrar or the FMA can revoke or change the notice by sending you a new written notice, which they must also publish in the Gazette. If you do not comply with the notice, you can be fined up to $200,000 or imprisoned for up to 5 years.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6252161.

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103D: Registrar or FMA may prohibit persons from managing limited partnerships, or

"Authorities can stop someone from running a limited partnership if they think it's being managed poorly"

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103F: Appeals from FMA's exercise of power under section 103D or 103E, or

"Appealing a decision made by the FMA under sections 103D or 103E"

Part 2General
Prohibited and disqualified persons

103EAdditional power for Registrar or FMA to prohibit persons from being involved in management of limited partnerships

  1. This section applies in relation to a limited partnership that has been deregistered on any of the grounds described in section 98A(1)(c), (d), (e), or (f).

  2. The Registrar or the FMA may, by notice in writing given to a person, prohibit that person from being a general partner or promoter of a limited partnership, or being concerned in, or taking part (whether directly or indirectly) in the management of a limited partnership during such period not exceeding 10 years after the date of the notice as is specified in the notice. Every notice must be published in the Gazette.

  3. The power conferred by subsection (2) may be exercised in relation to any person who the Registrar or the FMA is satisfied was, within a period of 5 years before a notice was given to that person under subsection (4) (whether that period commenced before or after the commencement of this section), a general partner of, or concerned in, or a person who took part in, the management of, a limited partnership to which this section applies, unless that person satisfies the Registrar or the FMA—

  4. that the acts or omissions of that person were not wholly or partly responsible for the limited partnership being a limited partnership to which this section applies; or
    1. that it would not be just or equitable for the power to be exercised.

      1. The Registrar or the FMA must not exercise the power conferred by subsection (2) unless—

      2. not less than 10 working days' notice of the fact that the Registrar or FMA intends to consider the exercise of it is given to the person; and
        1. the Registrar or FMA considers any representations made by the person.

          1. No person to whom a notice under subsection (2) applies may be a general partner or promoter of a limited partnership, or be concerned or take part (whether directly or indirectly) in the management of a limited partnership.

          2. Where a person to whom the Registrar or the FMA has issued a notice under subsection (2) appeals against the issue of the notice under this Act or otherwise seeks judicial review of the notice, the notice remains in full force and effect pending the determination of the appeal or review, as the case may be.

          3. The Registrar or the FMA may, by notice in writing to a person to whom a notice under subsection (2) has been given,—

          4. revoke that notice; or
            1. exempt that person from the notice in relation to a specified limited partnership or limited partnerships.

              1. The Registrar or the FMA must publish a notice under subsection (7) in the Gazette.

              2. Every person to whom a notice under subsection (2) is given who fails to comply with the notice commits an offence and is liable on conviction to imprisonment for a term not exceeding 5 years or to a fine not exceeding $200,000.

              Notes
              • Section 103E: inserted, on , by section 30 of the Limited Partnerships Amendment Act 2014 (2014 No 47).