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Overseas Investment Act 2005

National security and public order risks management regime - Risk management actions - Prohibition orders

92: Prohibition orders

You could also call this:

"The Minister can stop a deal from happening with a prohibition order if it might cause problems for New Zealand."

Illustration for Overseas Investment Act 2005

The Minister can stop a call-in transaction from happening by giving a prohibition order to the person involved. This can happen after the Minister reviews the transaction. You must follow the order if you get one. The Minister can only give a prohibition order if they think the transaction will cause a problem mentioned in section 81 and that problem cannot be fixed with a direction order. When making a decision about a prohibition order, the Minister must think about New Zealand's international obligations and you have to comply with the order if you are given one.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS358847.

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Part 3National security and public order risks management regime
Risk management actions: Prohibition orders

92Prohibition orders

  1. The Minister may give a prohibition order to a relevant acquirer following a review of a call-in transaction, prohibiting the call-in transaction from being given effect to.

  2. A prohibition order may—

  3. specify any reasonable steps that must be taken in order to comply with the prohibition order:
    1. require the person to report to the regulator within the time specified in the order stating how and when the order has been or will be implemented.

      1. The Minister may give a prohibition order only if the Minister is satisfied on reasonable grounds that—

      2. the call-in transaction gives rise, or is likely to give rise, to a risk referred to in section 81; and
        1. the risk cannot be adequately managed by giving the relevant acquirer a direction order.

          1. When acting under this section, the Minister must have regard to New Zealand’s international obligations.

          2. A person who is given a prohibition order must comply with it.

          Notes
          • Section 92: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).