Plain language law

New Zealand law explained for everyone

Takeovers Act 1993

Takeovers code

20: Objectives of takeovers code

You could also call this:

"What the takeover rules aim to achieve"

Illustration for Takeovers Act 1993

When the Minister is making rules for takeovers, you need to think about some main goals. The Minister must consider encouraging the efficient use of resources and competition for companies. The Minister also thinks about treating people who own financial products fairly. The Minister wants to help New Zealand's capital markets compete internationally. You have to remember that people who own financial products make their own decisions about takeovers. The Minister also thinks about the costs and benefits of following the rules. The Minister decides how important each goal is when making the rules for takeovers.

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 It might be out of date or be missing some parts.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=DLM325855.

This page was last updated on — View changes

Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
Previous

19: Power to make takeovers code, or

"The Governor-General can make rules for when companies take over others."

Next

21: Matters to be considered by Minister in making recommendations concerning takeovers code, or

"What the Minister thinks about when making takeover rules"

Part 2Takeovers code

20Objectives of takeovers code

  1. In formulating recommendations concerning a takeovers code, the Minister shall consider the following objectives as the objectives for the code, namely,—

  2. encouraging the efficient allocation of resources:
    1. encouraging competition for the control of code companies:
      1. assisting in ensuring that the holders of financial products in a takeover are treated fairly:
        1. promoting the international competitiveness of New Zealand's capital markets:
          1. recognising that the holders of financial products must ultimately decide for themselves the merits of a takeover offer:
            1. maintaining a proper relation between the costs of compliance with the code and the benefits resulting from it.

              1. In formulating recommendations concerning a takeovers code, it is for the Minister to determine the weight that should be given to any particular objective or objectives referred to in subsection (1).

              2. Repealed

              3. Repealed
              Notes
              • Section 20(1): amended, on , by section 17(1) of the Takeovers Amendment Act 2002 (2002 No 45).
              • Section 20(1)(b): amended, on , by section 9 of the Takeovers Amendment Act 2010 (2010 No 88).
              • Section 20(1)(c): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
              • Section 20(1)(e): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
              • Section 20(2): replaced, on , by section 17(2) of the Takeovers Amendment Act 2002 (2002 No 45).
              • Section 20(3): repealed, on , by section 17(2) of the Takeovers Amendment Act 2002 (2002 No 45).
              • Section 20(4): repealed, on , by section 17(2) of the Takeovers Amendment Act 2002 (2002 No 45).