If a company takes action that affects the rights attached to shares, it’s not automatically invalid just because it wasn’t approved in the way described in section 117. This means that even if the company didn’t follow the correct approval process, the action they took might still be valid. It’s important to remember that this only applies to the specific issue of not getting approval as outlined in that section. There could be other reasons why an action might be invalid, but not getting this particular approval isn’t enough on its own to make the action invalid.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320612.
The taking of action by a company affecting the rights attached to shares is not invalid by reason only that the action was not approved in accordance with section 117.
