Restrictions on the Sale of Settlement Quota

Under the Maori Fisheries Act 2004, the TFCT cannot sell or gift its quota except to another mandated iwi organisation or an entity within the TOKM group (section 161(1) refers).

The TFCT cannot sell its quota within two years of the first transfer of quota being received (section 161(2) refers). Once this condition has been met, the TFCT must notify adult members of any proposed quota sale and obtain prior approval of not less than 75% of the adult members of the iwi who vote at a general meeting or via postal ballot (see section 162).

If quota is to be risked as security for a mortgage, or similar arrangement, then the transaction is treated as a ‘sale' and the provisions of section 162 are invoked.