Overseas Investment Act 2005

Consent and conditions regime - Enforcement - Powers of court

48: Court may order person in breach or involved in breach to pay civil pecuniary penalty

You could also call this:

"Court can order you to pay a fine if you break the Overseas Investment Act 2005 rules"

If you break the Overseas Investment Act 2005, a court can order you to pay a civil pecuniary penalty to the Crown or another person. You can be ordered to pay this penalty if you have done something wrong under the Act, like breaking a rule or not following a notice under section 38, section 39, section 40, or section 41.

The court can also order you to pay a penalty if you have not followed a condition of a consent, an exemption, or a direction order.

The amount of the penalty depends on what you did wrong. The court can order you to pay up to $500,000 if you are an individual or up to $10 million if you are not an individual.

However, if you break section 51C, the penalty cannot be more than $20,000.

You cannot be ordered to pay a penalty and a fine for the same thing. The court must decide if you have done something wrong based on a balance of probabilities.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM358067.


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48A: Defences for person involved in contravention, offence, or failure, or

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Part 2Consent and conditions regime
Enforcement: Powers of court

48Court may order person in breach or involved in breach to pay civil pecuniary penalty

  1. On the application of the regulator, the court may order a person (A) to pay a civil pecuniary penalty to the Crown or any other person specified by the court if A has—

  2. contravened this Act; or
    1. committed an offence under this Act; or
      1. failed to comply with a notice under section 38 or section 39 or section 40 or section 41; or
        1. failed to comply with a condition of a consent, an exemption, an exemption certificate, a direction order, or an interim direction order; or
          1. been involved in a contravention of this Act, the commission of an offence under this Act, or a failure to comply referred to in paragraph (c) or (d).
            1. The court may order A to pay a civil pecuniary penalty not exceeding the highest of the following:

            2. $500,000 in the case of an individual or $10 million in any other case:
              1. 3 times the amount of any quantifiable gain (for example, the increase in the value since acquisition) by A in relation to the property to which the consent, exemption, exemption certificate, direction order, interim direction order, prohibition order, or disposal order relates or for which a consent should have been obtained:
                1. the cost of remedying the breach of condition:
                  1. the cost of remedying the breach of a term of a prohibition order or a direction order:
                    1. the loss suffered by a person in relation to a breach of a term of a condition.
                      1. However, in the case of a contravention of section 51C, the amount of the civil pecuniary penalty must not exceed $20,000.

                      2. A person cannot be ordered to pay a penalty under this section and be required to pay a fine under any of sections 42 to 46 for the same conduct.

                      3. For the purposes of this section, the court must determine whether a person's conduct falls within subsection (1) on a balance of probabilities.

                      Notes
                      • Section 48 heading: amended, on , by section 38(1) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
                      • Section 48 heading: amended, on , by section 38(1) of the Overseas Investment Amendment Act 2018 (2018 No 25).
                      • Section 48(1): amended, on , by section 38(2) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
                      • Section 48(1)(d): replaced, on , by section 38(3) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
                      • Section 48(1)(e): inserted, on , by section 38(3) of the Overseas Investment Amendment Act 2018 (2018 No 25).
                      • Section 48(2): replaced, on , by section 38(4) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
                      • Section 48(2A): inserted, on , by section 38(6) of the Overseas Investment Amendment Act 2018 (2018 No 25).
                      • Section 48(2A): amended, on , by section 38(5) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).