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Overseas Investment Act 2005

Consent and conditions regime - Enforcement - Disposal of property

41G: Consequences of disposal or retention of property

You could also call this:

"What happens if you don't follow the rules about property you're not allowed to have"

Illustration for Overseas Investment Act 2005

If you get a notice about property, you must follow the rules. You are not in trouble if you dispose of the property as the notice says, and you follow the other rules in section 41F(2)(b). You must do this within the time and in the manner specified in the notice under section 41F(2)(a) and section 41F(2)(b).

If you make a false statement or give false information about the property, you can still be in trouble. This includes making false statements or giving false information in offers, representations, documents, or communications with the regulator. If someone else is involved in the problem with the property, they might have to pay a civil pecuniary penalty under section 48, even if you are not in trouble.

The regulator can take other action if you do not follow the rules. This can happen if you do not notify the regulator as required under section 41F(2)(b), or if you do not dispose of the property as required under section 41F(2)(a). However, not following the notice is not a problem that leads to civil or criminal liability by itself. You can also look at Part 4 of the Crimes Act 1961 for more information about parties to the commission of offences.

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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=LMS112007.

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41F: Regulator may issue notice requesting disposal of property, or

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Part 2Consent and conditions regime
Enforcement: Disposal of property

41GConsequences of disposal or retention of property

  1. A person (A) is not liable for the contravention, offence, or failure referred to in section 41F(1) if A—

  2. disposes of the property within the time and in the manner specified in the notice under section 41F(2)(a); and
    1. complies with section 41F(2)(b) within the time and in the manner specified in the notice under that paragraph.

      1. Subsection (1) does not apply if, in connection with the property, A has—

      2. made any statement that is false or misleading in any material particular or any material omission in—
        1. any offer or representation made for the purposes of this Act or regulations; or
          1. any information or document provided to the regulator; or
            1. any communication with the regulator; or
            2. provided the regulator with a document that is false or misleading in any material particular.

              1. If another person (B) is involved in the contravention, offence, or failure referred to in section 41F(1), B may be ordered to pay a civil pecuniary penalty under section 48 even though A is not liable under subsection (1).

              2. See also Part 4 of the Crimes Act 1961, which relates to parties to the commission of offences.

              3. The regulator may take any other enforcement action it thinks fit in relation to the contravention, offence, or failure referred to in section 41F(1) if—

              4. A fails to notify the regulator under section 41F(2)(b) within the time and in the manner specified in the notice under that paragraph; or
                1. A does not dispose of the property within the time and in the manner specified in the notice under section 41F(2)(a).

                  1. However, the failure to comply with the notice under section 41F is not itself a contravention of this Act that gives rise to any civil or criminal liability.

                  Notes
                  • Section 41G: inserted, on , by section 36 of the Overseas Investment Amendment Act 2018 (2018 No 25).
                  • Section 41G(3): amended, on , by section 30 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).