This section contains information about the assessment of the likely benefit to New Zealand arising from the factor relating to New Zealand oversight and participation.
The extent to which persons who are not overseas persons (New Zealanders) will be, or are likely to be, able to oversee, or participate in, the overseas investment and any relevant overseas person, including, for example, matters such as all or any of the following:
- whether there is or will be any requirement that 1 or more New Zealanders must be part of a relevant overseas person's governing body:
- whether a relevant overseas person is or will be incorporated in New Zealand:
- whether a relevant overseas person has or will have its head office or principal place of business in New Zealand:
- whether a relevant overseas person is or will be a party to a listing agreement with NZX Limited or any other registered exchange that operates a securities market in New Zealand:
- the extent to which New Zealanders have or will have any partial ownership or controlling stake in the overseas investment or in a relevant overseas person:
- the extent to which ownership or control of the overseas investment or of a relevant overseas person is or will be dispersed amongst a number of non-associated overseas persons (r28(j))?
Key elements of this factor
There are three key elements to this factor:
- There must be persons who are not overseas persons (New Zealanders).
- The New Zealanders must be likely to be able to oversee or participate in the overseas investment or any relevant overseas person.
- The overseeing or participation must be in the overseas investment or any relevant overseas person.
The Overseas Investment Act defines who an overseas person is. New Zealanders are persons who do not meet the definition of an overseas person.
Oversee or participate in
This factor focuses on the amount of New Zealand oversight and participation in the overseas investment or relevant overseas person at an ownership or control level. Other forms of oversight and participation, such as employing New Zealand managers or having New Zealand directors, are less relevant. Ownership interests are given greater weight than participation or management interests.
Meeting one or more of the six listed matters does not mean that the factor will be met overall.
This factor is intended to provide investors with an opportunity to show how they will allow for New Zealand oversight or involvement in the overseas investment. While investors are not required to put in place such mechanisms, the decision maker will take such mechanisms into account in determining whether this factor is met. The decision maker will also assess whether the investor has a meaningful commitment to New Zealand involvement.
The list of matters in regulation 28(j) is non-exhaustive and other relevant matters may be considered by the decision maker.
Making a claim
Provide the following information when making a claim under this factor:
- Regulation 28(j) matters:
Address each of the matters in regulation 28(j) that are relevant.
- Oversight or participation:
How New Zealanders are likely to be able to oversee or participate in the overseas investment and the relevant overseas person at an ownership level.
When the oversight or participation is likely to occur.
Anything that may prevent New Zealanders being able to oversee or participate in the overseas investment and the relevant overseas person.
An applicant should also include sufficient evidence to show that any oversight or participation by New Zealanders is likely to occur.