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

210: Power of court to direct supervisor

You could also call this:

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

Illustration for Financial Markets Conduct Act 2013

If you are involved in a situation with a debt security or a registered scheme, the court can make an order. This order can tell the supervisor of the debt security or scheme not to follow a special resolution made by the product holders. The court will only make this order if it thinks following the resolution would be unfair, such as being mean to the people who did not agree with it. You can ask the court for this order if you are the supervisor, the FMA, or a product holder. You must do this within 20 working days of the special resolution being made. The court can allow you to ask for the order after 20 working days, but you need to get the court's permission to do this.

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This page was last updated on 15 July 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4702215.

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Money and consumer rights > Banking and loansBusiness > Industry rulesBusiness > Fair trading

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

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

211: Court power to order winding up of scheme, or

"The court can close down a scheme if it's not working properly or can't pay its debts."

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

210Power of court to direct supervisor

The court may, on an application made under subsection (2), make an order directing a supervisor of a debt security under a regulated offer or of a registered scheme not to comply with a special resolution of product holders if the court is satisfied that compliance would be objectionable (for example, because it would be oppressive to the minority).
The supervisor, the FMA, or a product holder may apply for an order under this section within 20 working days after the special resolution (or, with leave of the court, within any longer period).