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New Zealand law explained for everyone

Fair Trading Act 1986

Enforcement and remedies - Management banning orders

46C: Management banning orders

You could also call this:

“Courts can stop people from managing businesses if they break fair trading rules”

The District Court can stop someone from being involved in managing a business. This is called a management banning order. The court can do this if the person has done certain things wrong at least twice in 10 years.

These wrong things include breaking fair trading rules themselves or being in charge of a business that broke these rules. The court can also make this order if another country has stopped the person from doing similar business activities because they broke fair trading rules there.

The court will only make this order if they think it’s needed to protect people. They want to stop the person, or any business they run, from breaking these fair trading rules again.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5838505.

Topics:
Business > Fair trading
Crime and justice > Courts and legal help
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46B: Enforcement of undertakings, or

“How the Commerce Commission can make you keep your promises”

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46D: Terms of management banning orders, or

“Rules for stopping someone from running a business”

Part 5 Enforcement and remedies
Management banning orders

46CManagement banning orders

  1. The District Court may make a management banning order against an individual who—

  2. has, on at least 2 separate occasions within a 10-year period (whether before or after this section comes into force or is amended), done either or both of the following:
    1. committed an offence against section 40(1) or (1A):
      1. been a director of, or concerned in the management of, an incorporated or unincorporated body when it committed an offence against section 40(1) or (1A); or
        1. has been prohibited by an overseas jurisdiction, in connection with the contravention of any law relating to fair trading, from carrying on activities that are substantially similar to those referred to in section 46D.

          1. The court may make the order only if it is satisfied that the order is necessary to protect the public from the risk that the person, or any incorporated or unincorporated body of which the person is a director, or the management of which the person is concerned in, will commit further offences against section 40(1) or (1A).

          Notes
          • Section 46C: inserted, on , by section 35 of the Fair Trading Amendment Act 2013 (2013 No 143).
          • Section 46C(1): amended, on , by section 261 of the District Court Act 2016 (2016 No 49).
          • Section 46C(1)(a): replaced, on , by section 14 of the Fair Trading Amendment Act 2021 (2021 No 32).
          • Section 46C(1)(b): repealed, on , by section 14 of the Fair Trading Amendment Act 2021 (2021 No 32).