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New Zealand law explained for everyone

Fair Trading Act 1986

Enforcement and remedies - Management banning orders

46D: Terms of management banning orders

You could also call this:

“Rules for stopping someone from running a business”

A management banning order stops someone from being involved in running a business in New Zealand for a certain amount of time. This order can last for up to 10 years.

If you get a management banning order, you can’t be a director of a company or help manage any kind of business in New Zealand. This includes both companies and other types of businesses.

You need to ask the District Court for permission if you want to do any of these things while the order is in place. The court will decide if they will let you or not.

This rule applies to all businesses in New Zealand, whether they are big companies or small groups of people working together.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5838506.

Topics:
Business > Fair trading
Business > Industry rules
Crime and justice > Criminal law
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46C: Management banning orders, or

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

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46E: Offence to breach management banning order, or

“You can get in trouble if you don't follow a special rule made just for you”

Part 5 Enforcement and remedies
Management banning orders

46DTerms of management banning orders

  1. A management banning order must prohibit the person to whom it applies from being, without the leave of the District Court, a director of, or being in any way (whether directly or indirectly) concerned in or taking part in the management of, an incorporated or unincorporated body that carries on business in New Zealand, for a period specified in the order, which must be no more than 10 years.

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Notes
  • Section 46D: inserted, on , by section 35 of the Fair Trading Amendment Act 2013 (2013 No 143).
  • Section 46D: amended, on , by section 261 of the District Court Act 2016 (2016 No 49).