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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Bank may form body corporate to acquire New Zealand business

314: Bank may form body corporate to acquire New Zealand business

You could also call this:

"The Bank of New Zealand can help a struggling overseas bank by creating a new company to take over its New Zealand business."

Illustration for Deposit Takers Act 2023

If you are an overseas bank in trouble, the Bank of New Zealand can help. The Bank can form a new company under the Companies Act 1993, which is a law that says how companies should be set up and run in New Zealand. You can read more about the Companies Act 1993 to learn about the rules for companies.

The Bank can buy shares in the new company for the overseas bank, or it can give the new company some of the overseas bank's shares. The Bank can also decide how the new company's shares are paid for.

The government can decide to move some or all of the overseas bank's property, rights, and debts to the new company on a specific date. This means that on that date, the new company will own those things.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS533520.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 7Crisis management and resolution
Conduct of resolution: Bank may form body corporate to acquire New Zealand business

314Bank may form body corporate to acquire New Zealand business

  1. If an overseas licensed deposit taker (A) is in resolution, the Bank may do 1 or more of the following:

  2. form and register a body corporate (B) under the Companies Act 1993:
    1. subscribe for or acquire, as trustee for A, all or any of B’s shares:
      1. issue all or any of B’s shares as fully or partly paid on the terms and conditions that the Bank thinks fit.

        1. The Governor-General may, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, declare that the whole or any part of any property, rights, and liabilities of A relating to its New Zealand business will vest in B on a date specified in the order.

        2. The property, rights, and liabilities of A vest in B on the date specified.

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