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Overseas Investment Act 2005

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

93: Disposal orders

You could also call this:

"The government can order someone to sell assets if the purchase affects New Zealand."

Illustration for Overseas Investment Act 2005

The Minister can tell an overseas person, or someone connected to them, to get rid of some assets if they were bought in a way that affects New Zealand. This can happen if the assets were bought in a transaction of national interest or a call-in transaction. The Minister's order can say what assets to get rid of, when and how to do it, and what steps to take.

The Minister can only give this order if they think the transaction could cause a problem, like one mentioned in section 81, and that problem cannot be fixed in another way, such as through enforcement action under subpart 5 of Part 2. You should also look at section 112 for more information about transactions of national interest. When making this decision, the Minister must think about New Zealand's international obligations.

If you are given a disposal order, you must follow it and get rid of the assets within the time and in the manner specified in the order. The Minister's decision is based on whether the transaction could cause a problem and whether that problem can be managed in another way.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS358851.

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

93Disposal orders

  1. The Minister may give a disposal order to an overseas person, or an associate of an overseas person, who acquired sensitive assets under a transaction of national interest or a call-in transaction.

  2. A disposal order may—

  3. require disposal of the whole or any part of the sensitive assets owned by the person or their associate:
    1. specify the time within which or manner in which the disposal must be made:
      1. specify any reasonable steps that must be taken in order to comply with the disposal 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 disposal order to a person only if the Minister is satisfied on reasonable grounds that—

          2. the transaction gives rise, or is likely to give rise, or has given rise to a risk referred to in section 81; and
            1. the risk cannot be adequately managed by taking an enforcement action under subpart 5 of Part 2 or (in the case of sensitive assets acquired under a call-in transaction) giving a direction order to the relevant acquirer.

              1. See also section 112, which applies when the Minister is giving a disposal order in connection with a transaction of national interest.

              2. The Minister must have regard to New Zealand’s international obligations when acting under this section.

              3. A person who is given a disposal order must comply with it within the time, and in the manner, specified in the order.

              Notes
              • Section 93: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).