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Overseas Investment Act 2005

National security and public order risks management regime - Miscellaneous provisions

128: Giving effect to and unwinding of call-in transactions

You could also call this:

"What happens when an overseas investment deal is done incorrectly"

Illustration for Overseas Investment Act 2005

If you give effect to a call-in transaction in a way that breaks the rules in section 85 or a prohibition order, it does not automatically become an illegal contract under subpart 5 of Part 2 of the Contract and Commercial Law Act 2017. You should know that this transaction is not void just because it was done without a direction notice or because it is an offence to give effect to the overseas investment in contravention of a prohibition order. This means the transaction is still valid in some ways, even if it was not done correctly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS359912.

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Part 3National security and public order risks management regime
Miscellaneous provisions

128Giving effect to and unwinding of call-in transactions

  1. A call-in transaction that has been given effect to in contravention of section 85 or a prohibition order—

  2. is not an illegal contract for the purposes of subpart 5 of Part 2 of the Contract and Commercial Law Act 2017; and
    1. is not void only because the transaction has been given effect to without a direction notice or because giving effect to the overseas investment in contravention of a prohibition order is an offence.

      Notes
      • Section 128: inserted, on , by section 52 of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).