Dairy Industry Restructuring Act 2001

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Reprint as at 20 February 2018

Coat of Arms of New Zealand

Dairy Industry Restructuring Act 2001

Public Act
2001 No 51
Date of assent
26 September 2001
see section 2

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry for Primary Industries.


3Expiry [Repealed]
6Act binds the Crown
7Authorisations granted [Repealed]
8Assets and shares acquired after 15 August 2001 [Repealed]
9Undertaking to dispose of shares in New Zealand Dairy Foods Limited [Repealed]
10Nature of obligation [Repealed]
11New co-op’s constitution [Repealed]
12Purpose [Repealed]
13Amendments to Dairy Board Act 1961 [Repealed]
14Conversion of Board into company [Repealed]
15Agreement for transfer or surrender [Repealed]
16Default procedure for buy-out of exiting companies’ interests in Board [Repealed]
17Notice to stop default procedure [Repealed]
18Default procedure to stop if new co-op amalgamation does not take effect [Repealed]
19Transfer of shares [Repealed]
20Cancellation of shares surrendered [Repealed]
23Restrictions on exports to designated markets
24Licences during initial period
25Reduction of licences in respect of designated markets in European Communities during the interim period
25AExport licence conferred on Board by section 24 or 25 must be recorded in register of export licence holders
26Later allocation of export licences
27Increases in rights to export to designated markets during initial period
27AIncreases or reductions in rights to export to designated markets after initial period
28Restriction on transfer of initial licences
28ATransferring export licences
29Revocation of initial licences
29AQuota trade completed before trade at normal tariff
29BRegister of export licence holders
29CPower to authorise persons
29DPower to require assistance
29EPower of entry without search warrant
29FPower to examine, etc
29GPower to require information
29HPower to audit milk collection data
29IIssue of search warrant
29JEntry and search powers when executing warrant [Repealed]
29KRequirements when executing warrant [Repealed]
29LDisposal of property seized under search warrant
30Customs and Excise Act 1996 to apply to prohibited exports
32Strict liability
33Defence available
34Liability of companies and persons for actions of agents or employees
35Liability of directors and managers
36Presumption as to authority
37No Crown liability
38Infringement actionable by licensee
39Unjustified proceedings
40Notice of international obligations
41Minister may require information
42Disclosure of information
44Restructuring plan [Repealed]
45Contents of restructuring plan [Repealed]
46Share allocation plan [Repealed]
47Constitution must provide for retention of core database
48Constitution must restrict who may hold shares
49Constitution must impose maximum voting rights
50Constitution must provide for postal voting
51Minister’s consent needed to change certain provisions of constitution
52Corporate form
53Application for registration of co-operative company [Repealed]
54LIC board must give restructuring plan to Minister [Repealed]
55Approval of restructuring plan [Repealed]
56Revision of restructuring plan [Repealed]
57Approval of revised restructuring plan [Repealed]
58Failure to submit restructuring plan [Repealed]
59Notification to prospective shareholders [Repealed]
60Implementation of restructuring plan [Repealed]
62Regulations relating to herd testing and provision of information to core database
63Regulations relating to access to core database
64General regulations relating to herd testing and core database
65Regulations requiring disclosure of information by LIC
65ARegulations relating to dairy industry entity other than LIC
66Information to be supplied to chief executive
68Database if LIC wound up
69Herd Testing Regulations 1958 deemed to have been made under this Act
71Statement of principles
73New co-op must accept application
74Commencement and terms of supply
75Application periods
76Publication of application period
77Price of co-operative share
77APrice must be fair value
77BWhen section 77A first applies
78Peak note price [Repealed]
79Co-operative share standard
80Publication of prices and standards
81Requirements applying to co-operative shares for applications in application period
82Requirements applying to co-operative shares for applications outside application period
83Restrictions on payments
84Deposit restriction
85Balance of purchase price
86Publishing capacity constraint notices
87Effect of capacity constraint notice on supply
88Effect of capacity constraint notice on purchase of co-operative shares
89Effect of change in co-operative share standard before supply commences if default price applies
90Deposit if default price applies
91Balance of purchase price if default price applies
92Deposit if June price elected
93Balance of purchase price if June price elected
94Minimal supply: first exception
95Transport costs: second exception
96Order in Council may terminate second exception
97Right to withdraw
98Surrender value of co-operative shares for withdrawal notified in application period
99Surrender value of co-operative shares for withdrawal notified outside application period
100Effect of change in co-operative share standard before withdrawal
101Payment on withdrawal
102Capital notes
103Repurchase of capital notes by new co-op
104Use of redeemable preference shares
105Provisions concerning redeemable preference shares
106No discrimination between suppliers
107Regulation of supply contracts for raw milk
108Right to supply independent processors
109Sale of milk vats
109ASubpart 5 of Part 2 provisions do not apply
109BOrder in Council specifying date on and from which specified subpart 5 provisions do not apply
109CWhen Minister must recommend that Order in Council be made
109DPreconditions for making Order in Council
109ERequirements for notice given by new co-op to chief executive
109FNotice by new co-op to chief executive triggering repeal of section 109A
109GRepeal of section 109A
109HRevocation of order made under section 109G
109IConditions of making order under section 109G(2)
109JChief executive may give new co-op notice requiring verification
109KWhen sections 109L to 109N apply
109LNew co-op’s obligations in relation to market in co-operative shares and to new co-op fund
109MRestrictions on new co-op
109NExpiry of sections 109A to 109M
110Purpose [Repealed]
111Application [Repealed]
112New co-op must supply information [Repealed]
113New co-op must purchase produce if required [Repealed]
114Terms of purchase of exiting company’s produce [Repealed]
115Regulations relating to milk
116Obligations to publish information
117Information to be supplied to Commission
119Regulations prescribing fees
119AIncorporation by reference
120Determination to resolve conflict
121Requirements for application
122Commission must notify parties
123Commission must decide whether to make determination
124When determination must be completed
125Requirements for determinations
126Matters included in determination
127Procedure for determinations
128Applicant may withdraw
129Parties’ costs
130Clarification of determination
131Reconsideration of determination
132Appeals from certain determinations
133Enforcing Commission determinations
134Levy regulations
135Constitution of new co-op
136Making and giving applications or notices
140Jurisdiction of High Court
141Pecuniary penalties
143Actions for damages
145Application of Commerce Act 1986 provisions
146Additional proceedings
147Minister to certify that market share thresholds met [Repealed]
148Subparts 5 and 5A cease to apply to island that meets its market share threshold [Repealed]
148AReport required if not requested before 1 June 2015 [Repealed]
148BProcedure where market share threshold is met after report requested under section 148A [Repealed]
149Subparts 5 and 5A expire if both islands meet their market share thresholds [Repealed]
150Transition [Repealed]
150APurpose of this subpart
150BCertain assumptions do not detract from purpose of subpart
150CSetting of base milk price in way that is consistent with certain principles
150DMilk Price Panel
150EAppointment of members of panel
150FNew co-op must maintain milk price manual
150GSteps new co-op must take if panel recommendation not followed or implemented
150HCommission must review milk price manual
150ICommission’s report
150JCommission must make final report publicly available
150KProcedure for review of milk price manual
150LNew co-op must provide Commission with milk price manual and other information
150MDraft Commission report
150NSteps new co-op must take if panel recommendation not followed or implemented
150OCommission must review calculation of base milk price
150PCommission’s report
150QCommission must make final report publicly available
150RSteps new co-op must take if base milk price changed after Commission report
150SProcedure for review of base milk price calculation
150TNew co-op must provide Commission with certain information
150UDraft Commission report
150VApplication of Commerce Act 1986 to review by Commission under this subpart
151Shares issued on amalgamation neither dutiable gift nor dividend
152Available subscribed capital of new co-op
153Class of shares in respect of which available subscribed capital is received
154Net losses and imputation credits of amalgamating co-ops
155Taxation of company into which Board converts
156Gift duty and taxation in respect of Livestock Improvement Corporation Limited
157Taxation of The New Zealand Dairy Research Institute
158The New Zealand Dairy Research Institute
161Application of Co-operative Companies Act 1996 to new co-op shares
161AVoting rights in respect of new co-op fund securities held by new co-op or nominee
161BNew co-op may acquire new co-op fund securities
161CNew co-op may exchange new co-op fund securities for co-operative shares
161DFinancial assistance by new co-op for purchase of co-operative shares
161EApplication of Companies Act 1993
161FApplication of section 20(2) and (3) of Co-operative Companies Act 1996
162Shareholders’ Council of new co-op
163General regulations
164Validation of issue of certain shares
165Repeals, revocations, and amendments
166Board must supply information about export permits [Repealed]
167Saving relating to export produce [Repealed]
168Annual report and statements for season ending 31 May 2001 [Repealed]
169Saving relating to superannuation schemes
Reprint notes