Plain language law

New Zealand law explained for everyone

Financial Markets Conduct Act 2013

Governance of financial products - Intervention in debt securities offered under regulated offer or registered schemes - Powers to obtain court orders to intervene

209: Power of court to appoint new manager, provide for manager powers, and deal with changes of managers

You could also call this:

"The court can appoint a new person to manage a scheme if the old one is not working properly."

Illustration for Financial Markets Conduct Act 2013

The court can make an order to appoint a new manager for a registered scheme if there is no manager or if they want to replace the existing one. You can ask the court to do this if you are the supervisor of the scheme, the FMA, a scheme participant, or the manager of the scheme. The court can also give the new manager certain powers to help the scheme participants.

The court can make other orders too, like giving the manager extra powers to do something that is in the best interests of the scheme participants. They can also change or cancel agreements that the old manager made, or amend the scheme's governing document to appoint a new manager. If the old manager is removed, the court can cancel any payments or property transfers that the scheme owes to them.

If the court appoints a new manager, that manager will have all the same powers and duties as the old one, as set out in the scheme's governing document or by law. The court can appoint a new manager if the old one has broken any rules or is insolvent, which means they cannot pay their debts. You can find more information about this in section 191.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4091229.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading
Previous

208: Court orders to remedy problems, or

"Courts can fix financial product problems by making special orders to help people like you."

Next

210: Power of court to direct supervisor, or

"Courts can stop supervisors from following unfair decisions made by product holders."

Part 4Governance of financial products
Intervention in debt securities offered under regulated offer or registered schemes: Powers to obtain court orders to intervene

209Power of court to appoint new manager, provide for manager powers, and deal with changes of managers

  1. The court may, on the application of the supervisor of a registered scheme, the FMA, a scheme participant in a registered scheme, or (in the case of an order under paragraph (b)) a manager of a registered scheme, make an order to—

  2. appoint a new manager of a registered scheme (with any powers that the court orders) if there is no manager or in substitution for an existing manager:
    1. confer an additional power on the manager of a registered scheme (either generally or specifically) to facilitate a transaction or type of transaction that the court considers to be in the interests of the scheme participants, and provide for the exercise of that additional power:
      1. direct that section 191 not apply in whole or in part and also, if an agreement has been entered into between a manager of a registered scheme that has been removed and any other person,—
        1. vary the agreement or any collateral agreement as specified in the order and, if the court thinks fit, declare the agreement to have had effect as so varied on and after a date before the order was made, as specified in the order; or
          1. cancel the agreement and, if the court thinks fit, declare the cancellation to have had effect on and after a date before the order was made, as specified in the order:
          2. amend the governing document to provide for a new or temporary appointment of a manager of a registered scheme (whether the appointment is by a court order or under the governing document or this Act) or otherwise in connection with another order made under this section:
            1. cancel in whole or in part any liability of the scheme to make any payment or transfer any property to a manager of a registered scheme that has been removed.

              1. The court may under this section (without limiting subsection (1)) appoint a new manager in substitution for a manager who—

              2. has been held by the court to have contravened any issuer obligation; or
                1. is insolvent.

                  1. A manager appointed by the court under this section has all of the powers and duties of the manager of the registered scheme that are conferred or imposed by the governing document or by law.

                  Compare