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Commerce Act 1986

Business acquisitions

47B: Orders against New Zealand bodies corporate following declaration under section 47A

You could also call this:

"Courts can order New Zealand companies to follow rules if they're controlled by someone overseas."

Illustration for Commerce Act 1986

The Commission can ask the High Court to make an order about a New Zealand company. This can happen when the Commission is asking for a declaration under section 47A about an overseas person who controls the company. The Commission can ask for this order at the same time as they ask for the declaration, or while the declaration is being considered, or after it has been made.

If the High Court makes a declaration under section 47A about an overseas person, it can make an order about any New Zealand company that the person controls. The order can tell the company to stop doing business in New Zealand, sell some of its shares or assets, or take other actions that the court thinks are fair. The company must stop doing business in New Zealand within six months, or a longer time decided by the court.

If a company does not follow an order made under this section, it is breaking the law.

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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=DLM7415537.

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47A: Declaration relating to acquisition by overseas person, or

"When someone from overseas buys a New Zealand company, a court can make a special statement if it affects competition."

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47C: Application by Commission for declaration or order, or

"The Commission can ask a court to make a decision or order about a company."

Part 3Business acquisitions

47BOrders against New Zealand bodies corporate following declaration under section 47A

  1. The Commission may apply to the High Court for an order under this section in respect of a New Zealand body corporate—

  2. at the same time as the Commission applies for a declaration under section 47A in relation to an overseas person who has a controlling interest in the body corporate; or
    1. at any time while that application is pending or after the declaration has been made.

      1. If the High Court makes a declaration under section 47A in relation to an overseas person, it may make an order under this section requiring any New Zealand body corporate in which the person has a controlling interest to—

      2. cease carrying on business in New Zealand, in the market to which the declaration relates, no later than 6 months after the date of the declaration or any longer period specified by the court; or
        1. dispose of shares or other assets specified by the court; or
          1. take any other action (including disposing of shares or other assets) that the court considers, in all the circumstances, is consistent with the purpose of this Act.

            1. Contravention of an order made under this section is a contravention of this section.

            Notes
            • Section 47B: inserted, on , by section 11 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).