Plain language law

New Zealand law explained for everyone

Overseas Investment Act 2005

Consent and conditions regime - Procedure for making an application for consent and for granting consent

29: Transaction may be cancelled

You could also call this:

"The law can stop a deal if it wasn't approved, even after it's happened."

If you are involved in a transaction that needs consent under the Overseas Investment Act 2005, but the consent was not given, the transaction is not automatically illegal. You should know that the transaction is not void just because it happened without consent, or because giving effect to it without consent is an offence. The transaction can be cancelled by a party who did not need to get consent, or by the court if the regulator asks.

When a transaction is cancelled under this section, the court has certain powers, similar to those under sections 43 to 48 of the Contract and Commercial Law Act 2017. If the court orders the cancellation because the regulator asked for it, the court can also make other orders to make the cancellation happen. This means the court can take steps to ensure the cancellation is effective.

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 It might be out of date or be missing some parts.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

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358041.

Topics:
Business > Industry rulesMoney and consumer rights > Banking and loans
Previous

28: Conditions of consent, or

"Rules that overseas investors must follow when buying something in New Zealand"

Next

29A: Investor test applications where no change since investor test last met, or

"Applying for the investor test if nothing has changed since you last applied"

Part 2Consent and conditions regime
Procedure for making an application for consent and for granting consent

29Transaction may be cancelled

  1. A transaction for which consent is required under this Act and under which the overseas investment has been given effect without that consent—

  2. is not an illegal contract for the purposes of subpart 5 of Part 2 of the Contract and Commercial Law Act 2017; and
    1. is not void only because the overseas investment has been given effect to without the requisite consent or because giving effect to the overseas investment without the requisite consent is an offence; but
      1. may be cancelled by—
        1. a party to the transaction who was not required to obtain consent to the transaction under this Act, by giving notice in writing to all the other parties; or
          1. the court, on the application of the regulator.

          2. On cancellation under this section,—

          3. the court has the same powers as it has under sections 43 to 48 of the Contract and Commercial Law Act 2017; and
            1. if the court orders the cancellation on the regulator's application, the court may also make any other order necessary to give effect to the cancellation.

              Notes
              • Section 29(1)(a): amended, on , by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).
              • Section 29(2)(a): amended, on , by section 347 of the Contract and Commercial Law Act 2017 (2017 No 5).