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Companies Act 1993

Shares and debentures - Company may acquire its own shares

59: Acquisition of company's own shares

You could also call this:

“Company's rules for buying its own shares”

A company can buy or get its own shares if its constitution clearly allows it to do so. This is subject to section 52. If a company wants to buy or get its own shares, it must follow the rules in section 60, section 63, or section 65.

These rules don’t change or limit two things. First, they don’t affect a court order that tells a company to buy or get its own shares. Second, they don’t change section 110 and section 118, which are about a shareholder’s right to make a company buy shares.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320181.

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Part 6 Shares and debentures
Company may acquire its own shares

59Acquisition of company's own shares

  1. Subject to section 52, a company may purchase or otherwise acquire shares issued by it if it is expressly permitted to do so by its constitution.

  2. The purchase or acquisition of the shares must be made in accordance with section 60 or section 63 or section 65.

  3. Nothing in this section or in sections 60 to 67 limits or affects—

  4. an order of the court that requires a company to purchase or acquire its own shares; or
    1. sections 110 and 118 (which relate to the right of a shareholder to require a company to purchase shares).

      Notes
      • Section 59(3)(b): replaced, on , by section 8 of the Companies Act 1993 Amendment Act 1994 (1994 No 6).