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Venture Capital Fund Act 2019

Accountability

Schedule 1: Transitional, savings, and related provisions

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You are reading about the Venture Capital Fund Act 2019. The Guardians and New Zealand Growth Capital Partners Limited must work together to create a contract. They have to do this within a certain time frame, which is two months after the first policy statement is given under section 19. You need to know that the Minister can extend this time frame by up to two months. Before the contract is created, the Guardians must give a copy of the draft contract to the Minister. The Minister then has 15 working days to comment on the draft contract. The contract is about the Guardians appointing New Zealand Growth Capital Partners Limited to invest money using a fund of funds model. This model means investing in other funds rather than directly in companies. The Minister can step in if the contract is not created within the required time frame. They can specify the terms of the contract, which will be binding on both parties. The Minister must consult with the Guardians and New Zealand Growth Capital Partners Limited before exercising this power. They must also publish a notice about the contract in the Gazette, on the Internet, and present a copy to the House of Representatives. Some parts of the notice can be withheld if they are commercially sensitive.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS211086.

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42: Reporting by Guardians on VCF, or

"Guardians must report to the Minister about the Venture Capital Fund when asked"

1Transitional, savings, and related provisions Empowered by s 6

1Provisions relating to this Act as enacted

1Guardians and New Zealand Growth Capital Partners Limited must make reasonable efforts to ensure contract or other arrangement is entered into

  1. The Guardians and NZGCP must make reasonable efforts to ensure that a contract or other arrangement referred to in clause 2 is entered into before—

  2. the expiry of the 2-month period that starts on the date on which the first policy statement is given under section 19; or
    1. the expiry of a longer period specified by the Minister under subclause (2).

      1. The Minister may extend the period under subclause (1)(a) by up to 2 months (however, the power under this subclause may only be exercised once).

      2. Before the contract or other arrangement is entered into, the Guardians must—

      3. give a copy of the draft contract or arrangement to the Minister; and
        1. give the Minister at least 15 working days to comment on the draft contract or arrangement; and
          1. have regard to any comments given by the Minister within that period.

            1. This clause applies despite sections 16 to 23.

            2. In this schedule, NZGCP means New Zealand Growth Capital Partners Limited.

            Notes
            • Schedule 1 clause 1 heading: replaced, on , by section 49 of the Statutes Amendment Act 2025 (2025 No 74).
            • Schedule 1 clause 1(1): amended, on , by section 49 of the Statutes Amendment Act 2025 (2025 No 74).
            • Schedule 1 clause 1(5): replaced, on , by section 49 of the Statutes Amendment Act 2025 (2025 No 74).

            2Requirements and other provisions relating to contract or other arrangement

            1. The contract or other arrangement is for the Guardians (or a VCF investment vehicle) to appoint NZGCP to undertake investment of the whole of the money of the VCF using a fund of funds model on reasonable terms and conditions that will enable the Guardians to comply with its duties under this Act.

            2. Nothing in this clause (or the contract or arrangement) prevents or restricts—

            3. money of the VCF from being held or applied by or on behalf of the Guardians for the purposes of section 12; or
              1. the Guardians (or a VCF investment vehicle) from exercising any right to cancel the contract or other arrangement.

                Notes
                • Schedule 1 clause 2(1): amended, on , by section 49 of the Statutes Amendment Act 2025 (2025 No 74).

                3Minister may specify contract or other arrangement if parties do not agree within required time frame

                1. This clause applies if a contract or other arrangement has not been entered into in accordance with clause 1.

                2. The Minister may, by written notice to the Guardians and to NZGCP, specify a contract or other arrangement referred to in clause 2 that is binding on—

                3. the Guardians or a VCF investment vehicle (or both); and
                  1. NZGCP.

                    1. The contract or other arrangement—

                    2. must be treated as being on the terms and conditions specified in the notice; and
                      1. is enforceable as if it were a contract or arrangement that was freely and voluntarily entered into by the parties.

                        1. The power under subclause (2)—

                        2. may be exercised only once; and
                          1. may not be exercised if the Minister, by written notice to the Guardians, states that the Minister will not exercise the power.

                            1. The contract or other arrangement may be amended, replaced, or cancelled—

                            2. in accordance with the terms and conditions of the contract or other arrangement; or
                              1. by agreement between the parties; or
                                1. in accordance with section 36 or 37(1)(b) or (c) of the Contract and Commercial Law Act 2017.

                                  Notes
                                  • Schedule 1 clause 3(2): amended, on , by section 49 of the Statutes Amendment Act 2025 (2025 No 74).
                                  • Schedule 1 clause 3(2)(b): amended, on , by section 49 of the Statutes Amendment Act 2025 (2025 No 74).

                                  4Minister must consult and publish notice

                                  1. The Minister may exercise a power under clause 3 only after consulting the Guardians and NZGCP.

                                  2. As soon as practicable after giving a notice under clause 3, the Minister must—

                                  3. publish it in the Gazette; and
                                    1. publish it on the Internet; and
                                      1. present a copy of it to the House of Representatives.

                                        1. However, the Minister may withhold from disclosure under subclause (2) any part of the notice that the Minister considers is commercially sensitive and, in that case, must substitute a note of explanation for the parts withheld.

                                        Notes
                                        • Schedule 1 clause 4(1): amended, on , by section 49 of the Statutes Amendment Act 2025 (2025 No 74).

                                        5Other matters relating to contract or other arrangement

                                        1. This clause applies in relation to a contract or other arrangement entered into under clause 1 or specified under clause 3.

                                        2. NZGCP must be treated as having been appointed under section 29.

                                        3. Section 29(3) applies with all necessary modifications to the contract or other arrangement.

                                        Notes
                                        • Schedule 1 clause 5(2): amended, on , by section 49 of the Statutes Amendment Act 2025 (2025 No 74).