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Overseas Investment Act 2005

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

105: Application of Corporations (Investigation and Management) Act 1989

You could also call this:

"Rules for businesses under statutory management from the Corporations Act"

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When you are under statutory management, some rules from the Corporations (Investigation and Management) Act 1989 apply to you. These rules help the statutory manager make decisions about your assets and business. The statutory manager has a lot of power to manage your business and make decisions about your assets.

You must not remove any assets from New Zealand without permission from the statutory manager. If you do, you could be fined up to $300,000 or even go to prison for up to 12 months. The statutory manager can also stop you from paying money you owe to others.

The statutory manager has the power to sell your business or assets, and to make decisions about how to manage your business. They can also apply to the court for directions on how to manage your business. You must deliver all your books and property to the statutory manager, and you must not destroy or alter any records.

If you break any of these rules, you could be fined or go to prison. The statutory manager must report any offences to the regulator and the Solicitor-General. There are many other rules that apply to you when you are under statutory management, including rules about section 42, section 43, section 44, section 45, section 46, section 47, section 48, section 49, sections 50, 51, 53, and 72 of the Corporations (Investigation and Management) Act 1989.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS358927.

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104: Statutory manager may terminate contracts or arrangements posing significant risk to national security or public order, or

"The government can stop a contract if it's a risk to New Zealand's safety or order."

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106: Termination of statutory management, or

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

105Application of Corporations (Investigation and Management) Act 1989

  1. The following provisions of the Corporations (Investigation and Management) Act 1989 apply for the purposes of a statutory management under this Act, with all necessary modifications as if a person declared to be subject to statutory management under this Act were a corporation declared to be subject to statutory management under that Act:

  2. section 42 (moratorium):
    1. section 43 (prohibition against removal of assets from New Zealand), except that a person who commits an offence under section 43(2) is liable on conviction,—
      1. in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $300,000:
        1. in any other case, to a fine not exceeding $300,000:
        2. section 44 (statutory manager may suspend payment of money owing):
          1. section 45 (management of corporation to vest in statutory manager):
            1. section 46 (powers of statutory manager):
              1. section 47 (statutory manager may carry on business of corporation):
                1. section 48 (statutory manager may pay creditors and compromise claims):
                  1. section 49 (termination of contract of agency or service):
                    1. sections 50, 51, 53, and 72 (statutory manager may sell business undertaking of corporation), but subject to the modifications in section 110:
                      1. section 52 (liquidation of corporations):
                        1. section 54 (power to trace property improperly disposed of):
                          1. section 55 (application of certain provisions of Companies Act 1993):
                            1. section 58 (statutory manager may apply to court for directions):
                              1. section 59 (court may confer additional powers on statutory manager):
                                1. section 61 (prior winding up, liquidation, or receivership to cease):
                                  1. section 64 (corporation not entitled to be consulted about exercise of powers):
                                    1. section 66 (advances to statutory managers and members of advisory committees):
                                      1. section 67 (duty to deliver books and property to statutory manager):
                                        1. section 68 (offence to destroy, alter, or conceal records), except that a person who commits an offence under section 68(1) is liable on conviction,—
                                          1. in the case of an individual, to imprisonment for a term not exceeding 12 months or to a fine not exceeding $300,000:
                                            1. in any other case, to a fine not exceeding $300,000:
                                            2. section 69 (duty to report offences), except that—
                                              1. the reference to a person being guilty of an offence includes a person being liable to a civil pecuniary penalty under this Act:
                                                1. in relation to an offence, or to a liability to a civil pecuniary penalty, under this Act, the duty to report the matter to the Solicitor-General includes a duty also to report the matter to the regulator:
                                                2. sections 71 and 71A (application of other Acts).

                                                  Notes
                                                  • Section 105: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).