Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Bank may dispose of business undertaking or property, rights, or liabilities

321: Body corporate is also subject to resolution

You could also call this:

"A company is also subject to special rules during a financial crisis"

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You need to know about a body corporate, which is referred to as B. B must be treated as being in resolution, as stated in section 320. This means B is subject to certain rules. You are told that if the Bank publishes a notice in the Gazette before B is formed, subsection 1 does not apply. The notice must state the Bank's intention to form B, B's proposed name, and that subsection 1 will not apply to B. If subsection 1 applies, the resolution manager of the licensed deposit taker is also the resolution manager of B, as if they were appointed under section 357. The rules in this Part of the Act apply to B. The Bank can still end a resolution manager's appointment or replace them. If subsection 1 applies, B's moratorium period is the same as the licensed deposit taker's, initially. The moratorium period is explained in subpart 5. The Bank can use its power under section 285(2) for B separately from the licensed deposit taker.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS539589.

This page was last updated on 9 February 2026 — View changes

Topics:

Money and consumer rights > Banking and loansBusiness > Industry rules

320: Bank may dispose of business undertaking, etc, to bridge institution or asset management vehicle, or

"A bank can sell its business or parts of it to another company."

322: Consents not required under other legislation or agreement, and transactions do not constitute breach, or

"Selling or transferring things doesn't break rules or agreements"

Part 7Crisis management and resolution
Conduct of resolution: Bank may dispose of business undertaking or property, rights, or liabilities

321Body corporate is also subject to resolution

The body corporate (B) referred to in section 320 must be treated as being in resolution.
However, subsection (1) does not apply if, before B is formed and registered, the Bank publishes a notice in the Gazette that states—
that the Bank intends to form and register a body corporate under section 320; and
B’s proposed name; and
that subsection (1) will not apply to B.

If subsection (1) applies, the resolution manager of the licensed deposit taker is the resolution manager of B as if that resolution manager had been appointed under section 357, and the provisions of this Part apply accordingly.
Subsection (3) does not prevent the Bank from exercising a power to terminate a resolution manager’s appointment or to replace a resolution manager.
If subsection (1) applies, the period of moratorium for B under subpart 5 is initially the same as the period of moratorium that applies to the licensed deposit taker.
However, the Bank may exercise a power under section 285(2) in relation to B separately from the licensed deposit taker.

Compare

1989 No 157 s 123(4)