7 Who are overseas persons

(1)

The purpose of this definition is to provide that persons are overseas persons if they themselves are overseas persons (for example, not a New Zealand citizen or resident or, for companies, incorporated overseas) or they are 25% (or more) owned or controlled by an overseas person or persons.

(2)

In this Act, overseas person means—

(a)

an individual who is neither a New Zealand citizen nor ordinarily resident in New Zealand; or

(b)

a body corporate that is incorporated outside New Zealand or is a 25% or more subsidiary of a body corporate incorporated outside New Zealand; or

(c)

a body corporate (A) if an overseas person or persons have—

(i)

25% or more of any class of A’s securities; or

(ii)

the power to control the composition of 25% or more of A’s governing body; or

(iii)

the right to exercise or control the exercise of 25% or more of the voting power at a meeting of A; or

(d)

a partnership, unincorporated joint venture, or other unincorporated body of persons (other than a trust or unit trust) (A) if—

(i)

25% or more of A’s partners or members are overseas persons; or

(ii)

an overseas person or persons have a beneficial interest in or entitlement to 25% or more of A’s profits or assets (including on A’s winding up); or

(iii)

an overseas person or persons have the right to exercise or control the exercise of 25% or more of the voting power at a meeting of A; or

(e)

a trust (A) if—

(i)

25% or more of A’s governing body are overseas persons; or

(ii)

an overseas person or persons have a beneficial interest in or entitlement to 25% or more of A’s trust property; or

(iii)

25% or more of the persons having the right to amend or control the amendment of A’s trust deed are overseas persons; or

(iv)

25% or more of the persons having the right to control the composition of A’s governing body are overseas persons; or

(f)

a unit trust (A) if—

(i)

the manager or trustee, or both, are overseas persons; or

(ii)

an overseas person or persons have a beneficial interest in or entitlement to 25% or more of A’s trust property.