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Overseas Investment Act 2005

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

103: Statutory manager may sell vested assets

You could also call this:

"A government manager can sell assets belonging to someone from overseas if they're not being used correctly."

Illustration for Overseas Investment Act 2005

If you are an overseas person with sensitive assets in New Zealand, a statutory manager may be able to sell those assets. This can happen if you are acting in a certain way described in section 96(1)(b), but an order under section 95 will not put you under statutory management. The order can say which of your assets the statutory manager will control.

The statutory manager gets control of the assets when the order starts, as explained in section 98. You can find more information about when the order starts in that section. The statutory manager can then sell or get rid of some or all of the assets to anyone they choose, on any terms they think are suitable.

When the statutory manager sells the assets, they must follow some rules from the Corporations (Investigation and Management) Act 1989, specifically sections 51 and 72, which apply to sales under section 50(1) of that Act. These rules help the statutory manager make decisions about selling the assets. The statutory manager has to consider what is appropriate when selling the assets.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS358884.

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

103Statutory manager may sell vested assets

  1. This section applies to sensitive assets owned by any overseas person or their associate if—

  2. the overseas person or their associate is acting in the manner described in section 96(1)(b); but
    1. the order under section 95 will not make that overseas person or associate subject to statutory management.

      1. The order may identify the whole or any part of the sensitive assets as assets to be vested in the statutory manager.

      2. The order may identify the assets either individually or as a group or class.

      3. The assets identified in the order are vested in the statutory manager on the date on which and time at which the order comes into force (see section 98).

      4. The statutory manager may sell or otherwise dispose of the whole or any part of the vested assets to any person, on any terms and conditions, that the statutory manager considers appropriate.

      5. The provisions of sections 51 and 72 of the Corporations (Investigation and Management) Act 1989 apply, with any necessary modifications, to a sale of vested assets under this section as if the sale were a sale under section 50(1) of that Act.

      Notes
      • Section 103: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).