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Overseas Investment Act 2005

National security and public order risks management regime - Risk management actions - Statutory management

95: Statutory management of person who owns sensitive assets and associates

You could also call this:

"When someone with important assets does something wrong, the government can take control of their assets and decisions."

Illustration for Overseas Investment Act 2005

The Governor-General can make an order to put a person who owns sensitive assets under statutory management. This means the person's assets and decisions will be managed by someone else. The Governor-General can also make this order for someone who is associated with the person who owns sensitive assets. The order can say that certain assets must be given to the statutory manager, who will then sell them according to the rules in section 103. The Governor-General can choose one or more people to be the statutory manager for a certain amount of time.

If the order is made, it also applies to the subsidiaries of the person under statutory management, unless the order says it does not. The statutory manager appointed for the person will also be in charge of those subsidiaries for the same amount of time.

When there are multiple statutory managers, the order must say whether they make decisions together or separately. In this case, the law considers a "person" to be an individual or a group of people, whether they are a company or not.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS358857.

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94: Purpose of statutory management, or

"Protecting New Zealand from risks when overseas people control important assets"

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96: Recommendation of Minister, or

"The Minister's Recommendation: When the Government Checks if Overseas Investors are Good for New Zealand"

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

95Statutory management of person who owns sensitive assets and associates

  1. The Governor-General may, by Order in Council, on the recommendation of the Minister,—

  2. declare that a person who owns sensitive assets is subject to statutory management; and
    1. declare that an associate of a person who owns sensitive assets is subject to statutory management; and
      1. vest the assets identified in accordance with section 103 in the statutory manager for the purposes of disposing of those assets under that section; and
        1. appoint 1 or more persons as statutory manager or statutory managers of the person for a specified period.

          1. If an order is made under subsection (1),—

          2. every subsidiary of a person declared to be subject to statutory management, except any subsidiary declared to be a subsidiary to which the order does not apply, is subject to statutory management; and
            1. the appointment of a statutory manager for the specified period in respect of the person under statutory management also applies to those subsidiaries.

              1. If the order appoints 2 or more persons as statutory managers,—

              2. the order must state whether the powers of a statutory manager are to be exercised by those persons acting jointly or may be exercised individually; and
                1. references in this Act to a statutory manager include references to the statutory managers.

                  1. In this section, a person includes a body of persons whether incorporated or not.

                  Notes
                  • Section 95: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).