New Zealand Legislation: Acts

3 Unit trust to have manager and trustee

• (1) There shall be a manager and a trustee of every unit trust.

  (2) Subject to the provisions of this Act, the company that is the manager of any unit trust—

  • (a) shall have vested in it the powers of management of the investments and other property that are subject to the trusts governing that unit trust; and

  • (b) shall have the function (whether as principal or by an agent) of issuing or offering interests in the unit trust to the public for subscription or purchase, or of inviting the public to subscribe for or purchase such interests, or both of those functions; and

  • (c) shall have the same liability for its acts and omissions in the exercise of its powers and functions as manager of the unit trust as it would if it exercised those powers and functions as a trustee.

  (3) Subject to this Act, the trustee of a unit trust must have vested in it or in 1 or more nominated persons of the trustee or in 1 or more nominees of a nominated person of the trustee the investments and other property that are for the time being subject to the trusts governing the unit trust.

  (4) A trustee corporation or company or bank must not act as a trustee of a unit trust, and a company must not act as manager of a unit trust if those 2 persons are associated with each other under subpart YB of the Income Tax Act 2007.

  Subsection (3) was substituted, as from 3 June 1998, by section 3 Unit Trusts Amendment Act 1998 (1998 No 64).

  Section 3(4): substituted, on 1 April 2010, by section 861 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).