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Wednesday, 23 August 1972
Page: 373


Senator Douglas McClelland (NEW SOUTH WALES) asked the Minister representing the Treas urer, upon notice:

(1)   What are the general provisions of the New Zealand regulations entitled the Overseas Takeovers Regulations 1964, issued on 22nd December 1964, as amended.

(2)   Do these regulations provide that so far as New Zealand is concerned an outside organisation can come into that country and purchase up to a 25 per cent shareholding of a NewZealand company without Ministerial approval but that thereafter any proposed takeover must obtain Ministerial approval.

(3)   Do the regulations also provide that where takeover offers are made by or on behalf of any overseas person, the offeror must give notice of the offer to the Reserve Bank of New Zealand.


Senator COTTON - The Treasurer has provided the following answer to the honourable senator's question:

(1)   The general provisions of the New Zealand overseas takeover regulations are as follows:

(i)   that an overseas company, or a New Zealand company in which 25 percent or more of the voting power is controlled by overseas persons, must obtain Ministerial permission before it can acquire 25 per cent or more of the voting power of any New Zealand company; '

(ii)   that notice of any such takeover must be given to the Reserve Bank of New Zealand on or before the date at which the offer is made; and

(iii)   that the Minister of Finance may exempt any persons or classes of persons from all or any of the requirements of these regulations.

(2)   Ministerial approval under the' overseas takeovers regulations is only required when a foreign company plans to takeover 25 per cent or more of the voting power.

However, prior Reserve Bank approval for any agreement involving the remittance of funds must be obtained under the exchange control regulations.

(3)   The Reserve Bank must be notified under both the overseas takeovers and exchange control regulations if the offer involves a takeover of 25 per cent or more of the 'company.

The Bank must be notified under the exchange control regulations if the offer involves less than 25 per cent of the company.







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