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Overseas Investment Act 2005

Consent and conditions regime - When consent required and criteria for consent - Transactions of national interest

20E: Provisions relating to unpublished CDS

You could also call this:

"Rules for secret suppliers: telling investors and the regulator about investments"

Illustration for Overseas Investment Act 2005

If you are a critical direct supplier that has not been made public, you have some responsibilities. You must tell someone that you are a critical direct supplier as soon as you think they might invest in you. You must also tell them if you already know they have invested in you.

You have to give them this information in writing and include any other details that the Minister says you must. After you give them this notice, you must tell the regulator that you have done so. You must give the regulator this information in writing and include a copy of the notice you gave to the investor.

If you do not follow these rules, you will not be committing an offence under section 45. In this case, an investor is someone who buys sensitive assets from a critical direct supplier. The Minister can specify what information you must include in your notices, and you can find out more about this in Part 3 of the Legislation Act 2019.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS357525.

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20D: Who are critical direct suppliers, or

"What is a critical direct supplier, like a company helping our security agencies with important goods or services?"

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20F: Status of unpublished CDS confidential, or

"Keeping unpublished CDS information secret"

Part 2Consent and conditions regime
When consent required and criteria for consent: Transactions of national interest

20EProvisions relating to unpublished CDS

  1. This section applies if a critical direct supplier has been notified that it is an unpublished CDS.

  2. An unpublished CDS must notify a person of the unpublished CDS’s status as a critical direct supplier as soon as is reasonably practicable after the earlier of—

  3. the date on which there are reasonable grounds for an unpublished CDS to conclude that the person is likely to become an investor in that unpublished CDS; and
    1. the date on which an unpublished CDS knows or ought reasonably to know or believes that the person has become an investor in that unpublished CDS.

      1. A notice under subsection (2) must—

      2. be in writing; and
        1. contain any other information specified by the Minister by notice.

          1. An unpublished CDS must notify the regulator that it has given a notice under subsection (2) as soon as is reasonably practicable after the notice under subsection (2) is given.

          2. A notice under subsection (4) must—

          3. be in writing; and
            1. contain any information specified by the Minister by notice; and
              1. be accompanied by a copy of the notice given under subsection (2).

                1. A person who fails to comply with this section does not commit an offence for the purposes of section 45.

                2. In this section, an investor is a person who, under a call-in transaction or a transaction of national interest, acquires sensitive assets that relate to a critical direct supplier.

                3. A notice under subsection (3)(b) or (5)(b) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

                Notes
                • Section 20E: inserted, on , by section 17 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
                • Section 20E(3)(b): amended, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                • Section 20E(5)(b): amended, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
                • Section 20E(8): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).