21 Exemption for indirect or minority interests in overseas persons that own or control land

(1)

The relevant Ministers may decide not to impose a condition requiring the on-sale outcome if—

(a)

a person (OP) has applied for consent under the benefit to New Zealand test in respect of an acquisition of rights or interests in securities referred to in section 12(b); and

(b)

as a result of that acquisition, OP will have an indirect interest or a minority interest in an overseas person (A) that directly owns or controls an estate or interest in residential land described in section 12(a) (the relevant land).

(2)

The exemption applies if the relevant Ministers are satisfied that, by reason of the circumstances relating to OP and the degree of control that OP will have in A, OP and its associates would not have, or would be unlikely to exercise or control the exercise of, any substantial influence over the relevant land.

(3)

The exemption is subject to the conditions that—

(a)

OP does not increase their ownership or control interest such that this clause would not apply; and

(b)

OP meets the non-occupation outcome.

(4)

In this clause, OP has an indirect interest in A if the relevant Ministers are satisfied that OP is an upstream party that has no direct ownership interest in A.

(5)

In this clause, OP has a minority interest in A if the relevant Ministers are satisfied that OP has a less than 50% ownership or control interest in A.

(6)

In this Act, a person (OP) has a 50% or more ownership or control interest in another person (A) if OP has—

(a)

a beneficial entitlement to, or a beneficial interest in, 50% or more of A’s securities; or

(b)

the power to control the composition of 50% or more of the governing body of A; or

(c)

the right to exercise or control the exercise of 50% or more of the voting power at a meeting of A.

Schedule 2 clause 21(1)(b): amended, on 16 June 2020, by section 55(3) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).