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Reserve Bank of New Zealand Act 2021

Reserve Bank of New Zealand - Subsidiaries

113: Acquisition of shares or interests in companies, trusts, and partnerships, etc

You could also call this:

"The Reserve Bank can buy shares or get involved in companies and groups if it follows the rules."

Illustration for Reserve Bank of New Zealand Act 2021

The Reserve Bank of New Zealand can buy shares in a company or get involved in a partnership, trust, or other group. You need to know the Bank can only do this if it follows certain rules. The Bank must tell the Minister in writing before doing so. The Bank can get involved in these things to carry out its jobs and meet its goals under any Act. When the Bank buys shares in a company, it must have a big influence on that company. This means the Bank can affect the company's financial or operating decisions. If the Bank buys a subsidiary, this rule does not apply, and section 110 applies instead. The Bank has to follow specific rules when getting involved in companies or other groups.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS287154.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 2Reserve Bank of New Zealand
Subsidiaries

113Acquisition of shares or interests in companies, trusts, and partnerships, etc

  1. The Bank may do the following only in accordance with subsection (2):

  2. acquire shares in a company that gives the Bank substantial influence in or over that company:
    1. acquire an interest in any partnership, joint venture, or other association of persons, or an interest in a company other than in its shares:
      1. settle, or be or appoint a trustee of, a trust.

        1. The Bank may do that thing—

        2. after written notice to the Minister; and
          1. for the purpose of the Bank carrying out any of its functions, and acting consistently with its objectives, under any Act.

            1. Substantial influence, in relation to a company, means the capacity to affect substantially either the financial or operating policies, or both, of the company.

            2. This section does not apply if the Bank acquires the subsidiary (in which case section 110 applies).

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