Plain language law

New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Company may acquire its own shares

62: Disclosure document

You could also call this:

“Document explaining the company's plan to buy its own shares”

When a company wants to buy its own shares, it needs to prepare a special document called a disclosure document. This document is very important and must include specific information.

The disclosure document needs to explain what the offer is and how it will work. If the offer is only for certain shareholders, the document must say who those shareholders are.

If any of the company’s directors have a special interest in the shares being offered, the document must describe what that interest is and how much of the shares they’re interested in.

The document also needs to include the exact words of the decision that allows the company to buy its own shares. This is called a resolution. Along with the resolution, the document should explain what it means in a way that makes sense to you. It should help you understand how this decision might affect the company and its shareholders.

All of this information is put together to help you, as a shareholder, understand what’s happening and make informed decisions about the company’s plan to buy its own shares.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320187.

Topics:
Business > Industry rules
Business > Fair trading
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61: Special offers to acquire shares, or

“Rules for companies buying back their own shares”

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“Companies must notify shareholders before buying their own shares on the stock exchange”

Part 6 Shares and debentures
Company may acquire its own shares

62Disclosure document

  1. For the purposes of section 61, a disclosure document is a document that sets out—

  2. the nature and terms of the offer, and if made to specified shareholders, to whom it will be made; and
    1. the nature and extent of any relevant interest of any director of the company in any shares the subject of the offer; and
      1. the text of the resolution required by section 61, together with such further information and explanation as may be necessary to enable a reasonable shareholder to understand the nature and implications for the company and its shareholders of the proposed acquisition.