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New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Redemption of shares

72: Disclosure document

You could also call this:

“Document explaining share redemption process and rules”

A disclosure document is a paper that gives you important information about redeeming shares in a company. When a company wants to buy back its shares from shareholders, it needs to create this document. The disclosure document tells you two main things:

Firstly, it explains how the share redemption will work and what the rules are. If the company is only buying shares from certain shareholders, their names will be listed in the document.

Secondly, the document includes the exact words of the decision (called a resolution) that the company needs to make to buy back the shares. This is required by section 71 of the Companies Act. Along with this, the document gives extra information to help regular shareholders understand what the share redemption means for them and for the company.

The goal of this document is to make sure you have all the facts you need to understand what’s happening with the share redemption, even if you’re not an expert in company matters.

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 It might be out of date or be missing some parts.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=DLM320414.

Topics:
Business > Industry rules
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71: Special redemption of shares, or

“Buying back shares from shareholders under specific conditions”

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73: Cancellation of shares redeemed, or

“What happens when a company buys back its own shares”

Part 6 Shares and debentures
Redemption of shares

72Disclosure document

  1. For the purposes of section 71, a disclosure document is a document that sets out—

  2. the nature and terms of the redemption of the shares, and if the option to redeem the shares is to be exercised in relation to specified shareholders, the names of those shareholders; and
    1. the text of the resolution required by section 71, 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 redemption.