When you get a direction under section 20, it cannot tell the Guardians which method to use to check if they are following the direction. You know that the Guardians are in charge of the Venture Capital Fund. The direction under section 20 is about how the fund is invested. When venture capital is given to entities through funds, the Guardians do not have to check if the entities are actually New Zealand entities, according to section 20. This means the Guardians can invest in funds without verifying each entity. The Guardians must follow the rules, but they have some freedom in how they do it.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS235056.
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21: Minister may approve departure from direction in particular circumstances, or
"The Minister can let the Guardians not follow the rules in special situations."
23: Directions in policy statement that require Guardians’ agreement, or
"The Minister's directions for the Venture Capital Fund need the Guardians' agreement."
A direction under section 20 must not require the Guardians to use a particular evaluation methodology or performance standard for assessing whether the direction has been given effect to.
In the case of venture capital being made available to entities indirectly through funds, nothing in or under section 20 requires the Guardians to verify that any particular entity is, in fact, a New Zealand entity.
