Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
272Z: Audit of registered MCM
or “Regular checks to make sure registered modular component makers are still following the rules”
You could also call this:

“The law explains when and how a company that makes building parts can be stopped from working for a while.”

Your registration as a modular component manufacturer can be suspended in a few ways. If your certification is suspended under section 272W, your registration will be automatically suspended too.

The chief executive can also suspend your registration if you no longer meet the criteria in section 272Y, if you haven’t followed the MCM scheme rules, or if the responsible MCMCB for you hasn’t followed these rules.

If the regulations for section 272Y(1)(b) or (c) change and you no longer meet the criteria because of these changes, the chief executive can’t suspend your registration for at least 3 months after the changes come into effect.

Before the chief executive suspends your registration, they must tell you in writing why they want to do this and give you a chance to explain your side.

If your registration is suspended, the chief executive must let you know in writing, explaining why and what this means for you under section 272ZC(1)(b) if it applies. They also have to update the register to show your suspension.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: 272ZB: Lifting of suspension of registration of MCM

or “The rules for allowing a modular component maker to start working again after being told to stop”
Next

Part 3 Regulatory responsibilities and accreditation
Responsibilities relating to modular component manufacturers: Registration of modular component manufacturers

272ZASuspension of registration of MCM

  1. A person’s registration as a modular component manufacturer is automatically suspended if their certification is suspended under section 272W.

  2. The chief executive may suspend a person’s registration as a modular component manufacturer if satisfied that—

  3. the person no longer meets the criteria for registration in section 272Y; or
    1. the person has failed to comply with any MCM scheme rules; or
      1. the responsible MCMCB for the person has failed to comply with any MCM scheme rules.

        1. However, if—

        2. regulations made for the purposes of section 272Y(1)(b) or (c) are amended; and
          1. a person ceases to meet the criteria in section 272Y solely as a result of those amendments,—

              1. the chief executive cannot suspend their registration under subsection (2) unless 3 months have elapsed since those amendments came into force.

            1. Before suspending a person’s registration under subsection (2), the chief executive must—

            2. notify them in writing of the intention to do so and the reasons for it; and
              1. give them a reasonable opportunity to be heard.

                1. If a person’s registration is suspended under subsection (1) or (2), the chief executive must—

                2. notify them in writing of the suspension (including the reasons for it and the effect of section 272ZC(1)(b) (if applicable)); and
                  1. update the register accordingly.

                    Notes
                    • Section 272ZA: inserted, on , by section 68 of the Building (Building Products and Methods, Modular Components, and Other Matters) Amendment Act 2021 (2021 No 21).