Plain language law

New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Debentures

95C: Specific performance of contracts to subscribe for debentures

You could also call this:

“Court can order you to follow through on agreements to lend money to companies”

If you make a contract with a company to buy and pay for their debentures, a court can order you to follow through with that contract. This is called ‘specific performance’. Even though this kind of contract involves lending money, the court is not allowed to refuse to order specific performance just because of that fact. Debentures are a type of loan that companies use to borrow money from people.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1122461.

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“Reissuing or replacing company debentures that have been paid off”

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Part 6 Shares and debentures
Debentures

95CSpecific performance of contracts to subscribe for debentures

  1. A court may order the specific performance of a contract with a company to take up and pay for any debentures of the company.

  2. The court must not refuse to order the specific performance of a contract of that kind on the ground that the contract is one to lend money.

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Notes
  • Section 95C: inserted, on , by section 364(1) of the Property Law Act 2007 (2007 No 91).