Deposit Takers Act 2023

Crisis management and resolution - Bank may give directions, approve sales, and replace directors - Bank may remove, replace, or appoint director

271: How Bank exercises power to remove, replace, or appoint director

You could also call this:

"How the Bank removes, replaces, or appoints a director of a company."

Illustration for Deposit Takers Act 2023

When the Bank wants to remove, replace, or appoint a director, it must do a few things. The Bank must give written notice to the director who is being removed, replaced, or appointed, and to the Registrar of Companies. The Bank must also give written notice to the licensed deposit taker that it is using its power to remove, replace, or appoint a director.

The Bank gives notice to the Registrar of Companies as required by section 159 of the Companies Act 1993. When the Bank appoints a new director, the notice must include a form of consent and certificate as required by section 152 of the Companies Act 1993.

You can find more information about how the Bank exercises its power in section 270 and the Companies Act 1993.

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This page was last updated on 6 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS528778.

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rules

270: Power to remove, replace, or appoint director of licensed deposit taker, or

"The Bank can remove or appoint a director of a company that takes deposits if it's in trouble."

272: Prohibition on disclosing or publishing direction or notice, or

"Keep quiet about secret bank directions or notices unless the Bank says you can share them."

Part 7Crisis management and resolution
Bank may give directions, approve sales, and replace directors: Bank may remove, replace, or appoint director

271How Bank exercises power to remove, replace, or appoint director

The Bank must—
exercise a power under section 270 by giving written notice to—
1. the director concerned, or the person being appointed; and
2. in the case of the removal, replacement, or appointment of a director, the Registrar of Companies; and
give written notice of the exercise of the power to the licensed deposit taker.

A notice given under subsection (1)(a)(ii) is sufficient compliance with section 159 of the Companies Act 1993 as long as, in the case of an appointment, the notice is accompanied by the form of consent and certificate required under section 152 of that Act.