Overseas Investment Act 2005

Consent and conditions regime - Information-gathering powers

41B: Effect of proceedings

You could also call this:

"What happens when someone takes you to court about using a special power under the law"

Illustration for Overseas Investment Act 2005

If you start a court case about someone using a power from sections 38 to 41, the court case does not stop them from using that power until a final decision is made. You still have to do what you are supposed to do under those sections, even if there is a court case happening. The person in charge can keep using their power as if the court case was not happening.

The court can make a special order to stop the power from being used, but only if you can show that the power is being used unfairly and it will cause you a lot of harm. The court also has to think about whether you can get a good solution to the problem after the court case is finished, and whether the order will get in the way of the regulator doing their job.

If the court makes a final decision, you might be able to get some remedies, such as a declaration or damages, to help fix the problem. You might also be able to challenge some evidence in court.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS111998.


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41C: Effect of final decision that exercise of powers under sections 38 to 41 unlawful, or

"What happens if a court decides the Overseas Investment Act was used unfairly"

Part 2Consent and conditions regime
Information-gathering powers

41BEffect of proceedings

  1. If a person commences a proceeding in any court in respect of the exercise of any powers conferred by any of sections 38 to 41, until a final decision in relation to the proceeding is given,—

  2. the powers may be, or may continue to be, exercised as if the proceeding had not been commenced; and
    1. no person is excused from fulfilling the person’s obligations under any of those sections by reason of the proceeding.
      1. However, the court may make an interim order overriding the effect of subsection (1), but only if the court is satisfied that—

      2. the applicant has established a prima facie case that the exercise of the power in question is unlawful; and
        1. the applicant would suffer substantial harm from the exercise or discharge of the power or obligation; and
          1. if the power or obligation is exercised or discharged before a final decision is made in the proceeding, none of the remedies specified in subsection (3), or any combination of those remedies, could subsequently provide an adequate remedy for that harm; and
            1. the terms of the order do not unduly hinder or restrict the regulator in performing or exercising the regulator’s functions, powers, or duties under this Act.
              1. The remedies are as follows:

              2. any remedy that the court may grant in making a final decision in relation to the proceeding (for example, a declaration):
                1. any damages that the applicant may be able to claim in concurrent or subsequent proceedings:
                  1. any opportunity that the applicant may have, as defendant in a proceeding, to challenge the admissibility of any evidence obtained as a result of the exercise or discharge of the power or obligation.
                    Compare
                    Notes
                    • Section 41B: inserted, on , by section 35 of the Overseas Investment Amendment Act 2018 (2018 No 25).