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Companies Act 1993

Shares and debentures - Share register

91: Power of court to rectify share register

You could also call this:

“Court can correct mistakes in share register and compensate affected parties”

If your name is wrongly put in or left out of a company’s share register, you can ask the court for help. You can do this if you’re the person affected or if you’re a shareholder. You can ask the court to fix the register, to give you money for any loss you’ve had because of the mistake, or both.

When you ask for help, the court can do a few things. It can order the register to be fixed, tell the company or one of its directors to pay you for any loss you’ve had, or both fix the register and order payment.

The court can also make decisions about whether someone should have their name in the register or not. It can decide any other questions that need to be answered to fix the register properly.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320452.

Topics:
Business > Industry rules
Business > Fair trading
Crime and justice > Courts and legal help
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Part 6 Shares and debentures
Share register

91Power of court to rectify share register

  1. If the name of a person is wrongly entered in, or omitted from, the share register of a company, the person aggrieved, or a shareholder, may apply to the court—

  2. for rectification of the share register; or
    1. for compensation for loss sustained; or
      1. for both rectification and compensation.

        1. On an application under this section the court may order—

        2. rectification of the register; or
          1. payment of compensation by the company or a director of the company for any loss sustained; or
            1. rectification and payment of compensation.

              1. On an application under this section, the court may decide—

              2. a question relating to the entitlement of a person who is a party to the application to have his or her name entered in, or omitted from, the register; and
                1. a question necessary or expedient to be decided for rectification of the register.