20Investment fund whose trustee or manager is an associate of an airline

20 Investment fund whose trustee or manager is an associate of an airline

Prescribed interest (1) An interest in a share is an interest of a prescribed kind if: (a) the interest is an interest in a share in an airline; and (b) the interest‑holder, in the interest‑holder’s capacity as the trustee or manager of an investment fund, is an associate of the airline; and (c) the interest exists solely as a result of an action by the interest‑holder in the interest‑holder’s capacity as trustee or manager of an investment fund. Prescribed person (2) The interest‑holder mentioned in subsection (1) is a prescribed person if: (a) the Minister declares the investment fund, of which the interest‑holder is trustee or manager, to be a distanced investment fund; and (b) the declaration is in force. Application for investment fund to be declared a distanced investment fund (3) The interest‑holder may, in writing, apply to the Minister for a declaration that an investment fund is a distanced investment fund. Eligibility for investment fund to be declared (4) An investment fund is eligible to be declared a distanced investment fund if: (a) neither the trustee nor the manager of the investment fund is an associate (within the meaning of paragraph 5(1)(j) of the Schedule to the Act) of the airline; and (b) the investment fund is a fund in which a beneficial interest in less than 40% of the capital, and 40% of the income, is held by persons who are foreign persons. Minister to decide if investment fund to be declared a distanced investment fund (5) The Minister must: (a) if reasonably satisfied that the investment fund is eligible to be declared a distanced investment fund: (i) make the declaration; and (ii) within 7 days of making the declaration, give a copy of the declaration to the interest‑holder and publish a notice of the declaration on the Department’s website; or (b) if not so satisfied—refuse to make the declaration. Reasons for refusal decision to be given (6) The Minister must, within 7 days of deciding to refuse to make a declaration, give the interest‑holder written notice stating: (a) the reasons for the decision; and (b) the interest‑holder’s right to have the decision reviewed by the Administrative Review Tribunal.

Note: See section 28 for review of decisions.

Minister to be advised of adverse facts or circumstances (7) If: (a) a declaration by the Minister that an investment fund is a distanced investment fund is in force; and (b) the interest‑holder is, or becomes, aware of the existence of a fact or circumstance that, had it existed and been known to the Minister at the time the declaration was made, is likely to have resulted in the Minister refusing to make the declaration; the interest‑holder must give the Minister written details of the fact or circumstance before the end of 7 days after becoming aware of it. Minister may require information about continuing eligibility of investment fund (8) The Minister may, by written notice given to the interest‑holder, require the interest‑holder to give the Minister, within any period and in the manner specified in the notice, specified information about the eligibility of the investment fund to continue to be declared a distanced investment fund. (9) If a period is specified in the notice as the period within which the information must be given to the Minister, the period must be at least 30 days. (10) If no period within which the information must be given to the Minister is specified in the notice, the information must be given to the Minister within 30 days of the date of the notice.