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Deposit Takers Act 2023

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

309: Resolution manager may disclaim onerous property

You could also call this:

"The resolution manager can reject company property that's causing trouble."

Illustration for Deposit Takers Act 2023

You have a resolution manager who can make decisions about a company's property. The resolution manager has the same powers as a liquidator, which is someone who helps sort out a company's assets when it is in trouble, as stated in section 269 of the Companies Act 1993. This means the resolution manager can decide to disclaim, or reject, any property that is causing problems for the company. You can think of disclaiming property like getting rid of something that is not wanted or is causing trouble. The resolution manager can do this in the same way a liquidator would, by following the rules in section 269 of the Companies Act 1993. This helps the resolution manager make decisions about what to do with the company's property. This power to disclaim property does not affect any other powers the resolution manager has, such as those stated in section 304. The resolution manager can still make other decisions about the company's property. The rules about disclaiming property are an extra tool to help the resolution manager do their job.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533514.

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Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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308: Resolution manager may offer and issue deposit taker’s financial products, or

"Someone fixing a troubled bank can sell its financial products to help fix the problem."

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310: Resolution manager may trace property improperly disposed of, or

"Getting back property that was taken unfairly"

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

309Resolution manager may disclaim onerous property

  1. The resolution manager has all of the powers conferred on a liquidator of a company by section 269 of the Companies Act 1993 and may exercise the powers in the same manner as if the resolution manager were the liquidator of a company in liquidation under that Act.

  2. Section 269 of the Companies Act 1993 applies to the disclaimer of any property of the licensed deposit taker as if the property were property of a company to which that section applied.

  3. This section does not limit section 304.

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