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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Resolution manager’s general powers

305: Resolution manager has powers of deposit taker and of its shareholders, members, and board

You could also call this:

"A person helping a troubled company can make decisions like its owners."

Illustration for Deposit Takers Act 2023

You have a resolution manager who gets to make decisions for a deposit taker in trouble. The resolution manager gets all the powers the deposit taker has from any agreements. They also get powers from the deposit taker's shareholders, members, and board of directors. You can think of the resolution manager like a person who steps in to help a company in trouble. They get to make decisions like the company's owners or board of directors would. This includes companies that are partnerships or other types of groups. The resolution manager's powers are similar to those in the 1989 law. The resolution manager can make decisions for the deposit taker. They have the power to act on behalf of the company's owners or board of directors.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533513.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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304: Resolution manager’s general powers, or

"The resolution manager's job is to fix problems with banks and has the power to do so."

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306: Resolution manager may carry on business of licensed deposit taker, or

"Someone can take over a struggling bank to keep it running."

Part 7Crisis management and resolution
Conduct of resolution: Resolution manager’s general powers

305Resolution manager has powers of deposit taker and of its shareholders, members, and board

  1. The resolution manager has—

  2. all the powers, rights, and privileges that the licensed deposit taker in resolution has under any agreement or otherwise; and
    1. in the case of a body corporate in resolution,—
      1. all the powers of the shareholders or members in general meeting; and
        1. all the powers of the board of directors of the body corporate; and
        2. in the case of a partnership in resolution, all the powers exercisable by a partner or partners; and
          1. in the case of any other unincorporated body of persons in resolution, all the powers exercisable by its governing body.

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