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Venture Capital Fund Act 2019

Directions for winding up VCF

31: Minister may give directions for winding up

You could also call this:

"The Minister can give instructions on how to close the Venture Capital Fund."

Illustration for Venture Capital Fund Act 2019

The Minister can tell the Guardians what to do when it's time to wind up the Venture Capital Fund. You need to know the Minister must follow the rules in section 32 first. The Minister can give directions about stopping investments or paying money to the Crown. The Minister can also give directions about selling specific investments if they cannot agree with the Guardians on a plan. You should look at section 32(1)(e) to understand what a divestment programme is. The Minister wants to make sure they get the best return on their investments. When the Guardians pay money to the Crown, it must go into a Crown Bank Account. The Minister makes decisions about how to wind up the Venture Capital Fund. They consider what will get the best results.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS210808.

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30: Custodianship of VCF, or

"Who looks after the Venture Capital Fund's money and property"

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32: Process for directions for winding up, or

"How the Minister decides to close the Venture Capital Fund"

31Minister may give directions for winding up

  1. The Minister may, after complying with section 32, give directions that the Guardians must give effect to regarding the winding up of the VCF or of a part of the VCF, including directions to do any of the following:

  2. stop reinvesting money from the VCF or part of the VCF in New Zealand’s venture capital markets in a specified manner:
    1. comply with a divestment programme (see section 32(1)(e)):
      1. pay 1 or more amounts from the VCF to the Crown in a specified manner.

        1. Every amount paid to the Crown under a direction must be paid into a Crown Bank Account.

        2. The Minister may also give directions that the Guardians must give effect to regarding the realisation of particular investments of the VCF in a specified manner if—

        3. the Minister—
          1. has been unable to agree with the Guardians on a divestment programme after having made reasonable efforts to do so; or
            1. considers that the Guardians have failed to comply with a divestment programme in a material respect; and
            2. the Minister has had regard to the desirability of divesting the investments of the VCF over a time period that is most likely to maximise returns.