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Overseas Investment Act 2005

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

96: Recommendation of Minister

You could also call this:

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

Illustration for Overseas Investment Act 2005

The Minister can make a recommendation under section 95 if an overseas person or their associate has acquired sensitive assets in a way that is important to New Zealand. You need to know that the Minister must be satisfied that the overseas person or their associate is acting in a way that could harm national security or public order. The Minister must also think that this harm cannot be stopped by other actions, such as making a direction order or taking enforcement action under subpart 5 of Part 2.

The Minister has to consider New Zealand's international obligations when making a decision under this section. When the Minister is making a recommendation about a transaction of national interest, you can also look at section 112 for more information. The Minister's decision is important because it can affect what happens to the sensitive assets that the overseas person or their associate has acquired.

You should look at the details of the law to understand how the Minister makes these decisions, and how they affect overseas investment in New Zealand.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS358859.

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

96Recommendation of Minister

  1. The Minister may make a recommendation under section 95 only if—

  2. an overseas person, or an associate of the overseas person, acquired sensitive assets under a transaction of national interest or a call-in transaction; and
    1. the Minister is satisfied on reasonable grounds that,—
      1. in relation to the sensitive assets, the overseas person or their associate has acted, is acting, or is likely to act in a manner that gives or is likely to give rise to a significant risk to national security or public order; and
        1. the risk cannot be adequately managed by making a direction order (in the case of assets acquired under a call-in transaction), a disposal order, or taking an enforcement action under subpart 5 of Part 2.

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

        3. See also section 112, which applies when the Minister is making a recommendation in connection with a transaction of national interest.

        Notes
        • Section 96: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).