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Credit Contracts and Consumer Finance Act 2003

Preliminary provisions

8A: Meanings of associated and associated person

You could also call this:

"What it means to be associated with someone in business or family"

Illustration for Credit Contracts and Consumer Finance Act 2003

When we talk about the Credit Contracts and Consumer Finance Act 2003, you need to know what it means for people to be associated. You are associated with someone if you are related to them by blood, marriage, or adoption. This also includes if you are a trustee for them. You are also associated with someone if you are in a company together and one of you can control what the company does. This can happen if you are a director or officer of the company, or if you are related to someone who is. If you own a lot of shares in a company, you can also be associated with that company. If two companies are associated, it might be because one company owns a lot of shares in the other. It could also be because they have the same parent company, as defined in section 5 of the Companies Act 1993. Being an associated person means you have a connection to someone else, like a family member or business partner. This connection can be through family, marriage, or business. You can be associated with someone if you are related, married, or in a business together. The law uses the term "associated person" to describe someone who has this kind of connection to another person.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM212740.

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Part 1Preliminary provisions

8AMeanings of associated and associated person

  1. For the purposes of this Act, one person (A) is associated with another person (B),—

  2. if A is connected to B by blood relationship, marriage, or adoption or where A is a trustee for B, and for the purposes of this paragraph—
    1. persons are connected by blood relationship if they are within the fourth degree of relationship:
      1. persons are connected by marriage if one person is married to the other person or to a person who is connected by blood relationship to the other person, or if one person has a relationship in the nature of marriage with the other person or with a person who is connected by blood relationship to the other person (whether or not the parties to the relationship are of the same or different sex):
        1. persons are connected by adoption if one person has been adopted as the child of the other person or as a child of a person who is within the third degree of relationship to the other person:
        2. in the case where B is a company, if A is a director or officer of B, or is associated (within the meaning of paragraph (a)) with a director or officer of B, or is directly or indirectly able to exercise control over the affairs of B:
          1. in the case where A is a company, if B is a director or officer of A, or is associated (within the meaning of paragraph (a)) with a director or officer of A, or is directly or indirectly able to exercise control over the affairs of A:
            1. in the case where both A and B are companies,—
              1. if A is a holding company or subsidiary of B within the meaning of section 5 of the Companies Act 1993; or
                1. if A owns or controls shares that in aggregate carry the right to exercise or control the exercise of 20% or more of the voting power at meetings of B; or
                  1. if B owns or controls shares that in aggregate carry the right to exercise or control the exercise of 20% or more of the voting power at meetings of A; or
                    1. if A and B have the same holding company within the meaning of section 5 of the Companies Act 1993; or
                      1. if a third person owns or controls shares in each of them that carry the right to exercise or control the exercise of 20% or more of the voting power at meetings of each of them.

                      2. Associated person has a corresponding meaning.

                      Notes
                      • Section 8A: inserted, on , by section 75 of the Overseas Investment Act 2005 (2005 No 82).