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Overseas Investment Act 2005

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

110: Expenses of statutory management

You could also call this:

"Who pays for a statutory manager's work and how the government gets its money back"

Illustration for Overseas Investment Act 2005

When a statutory manager is appointed, you need to know who pays for their work. The Crown pays all the costs, charges, and expenses of the statutory manager. This includes what the statutory manager earns, as long as the Minister approves it.

The Crown can get its money back from the sale of certain assets. This can be from the sale of assets that belong to the Crown or from the sale of sensitive assets that belong to the overseas person or their associate.

If you want to know more about how the Crown gets repaid, you can look at section 51 of the Corporations (Investigation and Management) Act 1989, which is applied by section 105(i). This section explains the Crown's rights to be repaid, but you have to read it as if it is talking about the Crown's rights, not the statutory manager's costs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS359039.

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

110Expenses of statutory management

  1. All costs, charges, and expenses properly incurred by a statutory manager in the exercise of the manager’s functions or powers under this subpart (including any remuneration approved by the Minister) are payable by the Crown.

  2. The Crown is entitled to recover the amounts paid under subsection (1) from either of the following:

  3. the proceeds of sale or other disposition of any vested assets:
    1. the proceeds of sale or other disposition of the sensitive assets of the overseas person or their associate's (whether sold or disposed of as part of the sale of the business undertaking of the person under statutory management or otherwise).

      1. Section 51 of the Corporations (Investigation and Management) Act 1989 (as applied by section 105(i)) must be read as if a reference to the costs of the statutory manager in selling or disposing of the relevant property were a reference to the Crown’s rights to be repaid under subsection (2).

      Notes
      • Section 110: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).