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Venture Capital Fund Act 2019

Investment of VCF

23: Directions in policy statement that require Guardians’ agreement

You could also call this:

"The Minister's directions for the Venture Capital Fund need the Guardians' agreement."

Illustration for Venture Capital Fund Act 2019

You need to know that the Minister can give a direction about the Venture Capital Fund (VCF) only if the Guardians agree. The Minister's direction can be about how to invest the VCF or how to make sure it achieves its purpose, which is set out in section 9. The Guardians must follow the Minister's direction when managing the VCF. You are managing the VCF, so you must give effect to the Minister's direction about investing the VCF. You must also give effect to, or consider, the Minister's direction about other important matters related to the VCF. This is so you can help the VCF achieve its purpose. The Minister can still give a direction about the VCF without the Guardians' agreement, but only in certain situations, like when consulting the Guardians as described in section 20. This means the Minister has some power to make decisions about the VCF. You should be aware of this when managing the VCF.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS226994.

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22: Other provisions about directions under section 20, or

"Rules about following investment directions"

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24: Limits on policy statement, or

"The Minister can't tell the Venture Capital Fund what to invest in."

23Directions in policy statement that require Guardians’ agreement

  1. The Minister may give a direction of the kind described in this section only if the Guardians have agreed to the direction.

  2. The policy statement may contain directions that—

  3. impose requirements concerning the use of an overarching model or approach for investing the VCF or a part of the VCF; or
    1. relate to other high-level matters to ensure that the VCF achieves the purpose set out in section 9.

      1. The Guardians must, when managing and administering the VCF,—

      2. give effect to a direction under subsection (2)(a):
        1. give effect to, or have regard to, a direction under subsection (2)(b).

          1. Subsection (1) does not limit the Minister’s power to give a direction of the kind described in section 20 (after consulting the Guardians).