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Overseas Investment Act 2005

National security and public order risks management regime - Call-in transactions - Notification of call-in transactions

85: Military or dual-use technology and critical direct supplier call-in transactions

You could also call this:

"Investing in New Zealand businesses that deal with military technology or supply important goods has special rules"

Illustration for Overseas Investment Act 2005

If you are investing in a New Zealand business that deals with military or dual-use technology, or is a critical direct supplier, you need to follow some rules. You must tell the regulator before you make the investment. The Minister must also make a direction order before you can complete the investment. If you are investing in a business that is not publicly known as a critical direct supplier, you must tell the regulator as soon as possible, either before you make the investment or after you receive a notice under section 20E. You will not get in trouble for not telling the regulator if you did not receive a notice under section 20E and that is why you did not tell them. However, if you fail to comply with these rules, you will not be committing an offence under section 45.

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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=LMS358555.

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Part 3National security and public order risks management regime
Call-in transactions: Notification of call-in transactions

85Military or dual-use technology and critical direct supplier call-in transactions

  1. This section applies to a call-in transaction relating to a SIB that is—

  2. a business that researches, develops, produces, or maintains military or dual-use technology; or
    1. a critical direct supplier.

      1. Each overseas person or associate making the overseas investment in SIB assets must notify the regulator before giving effect to the call-in transaction.

      2. A call-in transaction must not be given effect to unless the Minister makes a direction order in relation to that transaction.

      3. However, in the case of an overseas person or associate investing in an unpublished CDS,—

      4. a notice under subsection (2) must be given before the date of giving effect to the call-in transaction or as soon as is reasonably practicable after the overseas person or associate receives a notice under section 20E; and
        1. that person does not breach subsection (2) if the reason the person fails to give the notice is that the person had not received a notice under section 20E.

          1. A person who fails to comply with this section does not commit an offence under section 45.

          Notes
          • Section 85: replaced, on , by section 53(7) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).
          • Section 85(4)(a): amended, on , by section 29(2) of the Overseas Investment Amendment Act 2021 (2021 No 17).