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Companies Act 1993

Shareholders and their rights and obligations - Minority buy-out rights

112B: Interest payable on outstanding payments

You could also call this:

“You might get extra money if your share payment is late”

If you need to be paid for shares under minority buy-out rights, but the payment is late, you might get extra money as interest. This depends on how the share price was decided.

If the share price was set using section 112, you’ll get interest from the day you should have been paid until the day you actually get paid. The amount of interest is worked out using Schedule 2 of the Interest on Money Claims Act 2016.

If the share price was set using section 112A, a special group of people called an arbitral tribunal will decide how much interest you get. They’ll think about all the important facts when they make this decision.

When the arbitral tribunal is working out the interest for a section 112A case, they’ll include any extra money you were given for interest or for losing out because of the late payment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1624956.

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112A: Price for shares referred to arbitration if shareholder objects to price, or

“Settling share price disputes through independent arbitration”

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Part 7 Shareholders and their rights and obligations
Minority buy-out rights

112BInterest payable on outstanding payments

  1. If a sum that must be paid under section 112 or 112A (the initial amount) is outstanding after it falls due under that section,—

  2. in the case of a share price determined under section 112, interest is payable from the date on which the initial amount falls due until the date of payment of the initial amount (and for this purpose the interest must be calculated in accordance with Schedule 2 of the Interest on Money Claims Act 2016):
    1. in the case of a share price determined under section 112A, interest is payable on the basis and at the rate that the arbitral tribunal thinks fit having regard to all of the circumstances.

      1. The sum on which interest is payable under subsection (1)(b) includes any interest or damages for loss awarded under section 112A.

      Notes
      • Section 112B: inserted, on , by section 7 of the Companies (Minority Buy-out Rights) Amendment Act 2008 (2008 No 69).
      • Section 112B(1): replaced, on , by section 29 of the Interest on Money Claims Act 2016 (2016 No 51).
      • Section 112B(2): amended, on , by section 5(2) of the Companies Amendment Act (No 2) 2012 (2012 No 60).