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Companies Act 1993

Enforcement - Injunctions

164: Injunctions

You could also call this:

“Court can stop companies or directors from breaking rules”

If a company or its director plans to do something that goes against the company’s constitution or the Companies Act 1993, the court can step in to stop them. This is called an injunction.

You, the company, a director, a shareholder, or an entitled person can ask the court for this injunction. The court will then decide whether to order the company or director to stop what they’re planning to do.

When the court makes this order, they can also add other helpful instructions. However, the court can’t make an order if the action has already happened.

If needed, the court can make a temporary order while they’re still thinking about the main request. This temporary order is called an interim order.

Remember, the court can only stop future actions, not things that have already been done.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320823.

Topics:
Business > Industry rules
Business > Fair trading
Crime and justice > Courts and legal help
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Part 9 Enforcement
Injunctions

164Injunctions

  1. The court may, on an application under this section, make an order restraining a company that, or a director of a company who, proposes to engage in conduct that would contravene the constitution of the company or this Act from engaging in that conduct.

  2. An application may be made by—

  3. the company; or
    1. a director or shareholder of the company; or
      1. an entitled person.

        1. If the court makes an order under subsection (1), it may also grant such consequential relief as it thinks fit.

        2. An order may not be made under this section in relation to conduct or a course of conduct that has been completed.

        3. The court may, at any time before the final determination of an application under subsection (1), make, as an interim order, any order that it is empowered to make under that subsection.

        Notes
        • Section 164(1): amended, on , by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).