Plain language law

New Zealand law explained for everyone

Reserve Bank of New Zealand Act 2021

Reserve Bank of New Zealand - Governor

92: Just cause for removal of Governor

You could also call this:

"When the Governor of the Reserve Bank does something wrong, they can be removed from their job."

Illustration for Reserve Bank of New Zealand Act 2021

You can remove the Governor of the Reserve Bank of New Zealand if they do something wrong. This includes doing something bad, not doing their job, or not following the rules. The Governor can also be removed if they do not do their job as the chairperson of the Monetary Policy Committee. You can also remove the Governor if they break the rules of the board or do not follow the rules that apply to them as a member of the Monetary Policy Committee. This includes not giving the board the information they need to do their job. The Governor can also be removed if they have another job or own part of a bank while they are Governor. There are some exceptions to these rules, and the Governor's contract will say what they are allowed to do. If the Governor does something wrong, but it is allowed in their contract, they will not be removed. You can find more information about this in sections 90 and 91, and in clause 25 of Schedule 3, which you can find by following the links to section 90 and section 91, and clause 25(1) of Schedule 3.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS293924.

This page was last updated on — View changes

Topics:
Money and consumer rights > Banking and loansWork and jobs > Worker rightsGovernment and voting > Government departments
Previous

91: Board must advise Minister of just cause and may recommend removal, or

"The Bank's board must tell the Minister if they find a good reason to remove the Governor."

Next

93: Process for removal of Governor, or

"How the Governor of the Reserve Bank can be removed"

Part 2Reserve Bank of New Zealand
Governor

92Just cause for removal of Governor

  1. In sections 90 and 91, just cause includes—

  2. misconduct, inability to perform the functions of office, and neglect of duty (other than in respect of a matter referred to in paragraph (b), (c), or (f)); and
    1. breach of any of the collective duties of the board or the individual duties of members (depending on the seriousness of the breach); and
      1. failure to adequately perform or exercise the functions or powers that are delegated by the board; and
        1. failure to adequately perform or exercise the functions or powers as chairperson of the MPC; and
          1. any of the matters set out in clause 25(1) of Schedule 3 applying to the Governor as a member of the MPC; and
            1. obstructing, hindering, or preventing the board from discharging responsibilities under this Act (for example, by failing to give the board information that is necessary to discharge those responsibilities); and
              1. the Governor, while holding office as Governor,—
                1. holding any other office of profit; or
                  1. engaging in any other occupation for reward; or
                    1. having an ownership interest in a regulated entity; or
                      1. having an ownership interest in a bank carrying on business outside New Zealand.

                      2. Subsection (1)(c) and (f) is subject to section 90(2)(a).

                      3. Subsection (1)(g) does not apply to the extent that the Governor holds the office, engages in the occupation, or has the ownership interest in accordance with the Governor’s terms and conditions of appointment.

                      Compare