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Overseas Investment Act 2005

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

99: Considerations affecting exercise of powers by statutory manager

You could also call this:

"Things to consider when making decisions as a statutory manager"

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When you are a statutory manager, you have to think about some things when making decisions. You must consider the purpose of statutory management, which is explained in section 94. You also need to think about protecting the people involved, like members and creditors, and the public interest.

You have to balance these things with the need to keep the business running. As a statutory manager, you must work with the regulator and follow their advice and directions. This includes directions given under section 100 and providing reports as required.

You also need to tell the regulator before taking certain actions, like selling a business or putting a company into liquidation, as described in the Corporations (Investigation and Management) Act 1989 and other sections like section 103 and section 104. You must notify the regulator before taking these actions to ensure everything is done correctly. This helps you make good decisions as a statutory manager.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS358865.

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

99Considerations affecting exercise of powers by statutory manager

  1. In exercising the powers conferred on them under this subpart, a statutory manager must have regard to—

  2. the purpose of statutory management (see section 94); and
    1. to the extent not inconsistent with paragraph (a), the desirability of preserving the interests of members and creditors of the person under statutory management and the overseas person or, where appropriate, the need to protect the beneficiaries under any trust administered by the person under statutory management or the overseas person or the public interest; and
      1. to the extent not inconsistent with paragraphs (a) and (b), the need to preserve the business or undertaking of the person under statutory management and the overseas person.

        1. A statutory manager must, in relation to the statutory management,—

        2. consult the regulator as and when required by the regulator; and
          1. have regard to any advice given to the statutory manager by the regulator; and
            1. comply with any directions given under section 100; and
              1. provide any reports required under section 100; and
                1. notify the regulator before taking an action under—
                  1. section 50(1) or (2) of the Corporations (Investigation and Management) Act 1989 (power of statutory manager to sell business undertaking of corporation) (as applied by section 105(i)):
                    1. section 52(1) of the Corporations (Investigation and Management) Act 1989 (power of statutory manager to put corporation into liquidation) (as applied by section 105(j)):
                      1. section 103 (power to sell vested property):
                        1. section 104 (power to terminate contracts).

                        Notes
                        • Section 99: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).