Plain language law

New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Assistance by a company in the purchase of its own shares

79: Disclosure document

You could also call this:

“A report explaining how a company is helping someone buy its shares”

If a company wants to help someone buy its own shares, it needs to create a special document called a disclosure document. This document needs to explain a few important things:

You need to describe what kind of help the company is giving, how it’s giving that help, and who is getting the help.

If the company is helping someone who is acting for someone else (called a nominee), you need to say who that other person is.

You also need to include the exact words of the decision that allows this help to be given. This decision is called a resolution.

Finally, you need to give enough extra information so that any shareholder can understand what’s happening and how it might affect the company and its shareholders.

All of this information needs to be clear enough for any shareholder to understand, even if they don’t know much about how companies work.

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 It might be out of date or be missing some parts.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=DLM320433.

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Business > Industry rules
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78: Special financial assistance, or

“Rules for companies providing financial assistance to purchase their own shares”

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80: Financial assistance not exceeding 5% of shareholders' funds, or

“Company can give small financial help for share purchases if conditions met”

Part 6 Shares and debentures
Assistance by a company in the purchase of its own shares

79Disclosure document

  1. For the purposes of section 78, a disclosure document is a document that sets out—

  2. the nature and terms of the financial assistance to be given, and to whom it will be given; and
    1. if the financial assistance is to be given to a nominee for another person, the name of that other person; and
      1. the text of the resolution required by section 78(1), 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 transaction.