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Takeovers Act 1993

Investigation and enforcement - Offences - False or misleading statement or information

44B: False or misleading statement or information

You could also call this:

"Don't make false claims about a company or its products"

Illustration for Takeovers Act 1993

You must not make a false or misleading statement about a company or its financial products. This includes saying something that is not true or leaving out important information that might affect what people think. You must not do this if it might make people buy or sell financial products, change their price, or vote for or against a company transaction. You are not allowed to make statements that are false or misleading about a company's financial products. This can include buying or selling these products, or how much they cost. When we say 'trade', we mean buying or selling financial products. Note: You can find more information about the Takeovers Amendment Act 2006, the Financial Markets (Repeals and Amendments) Act 2013, and the Takeovers Amendment Act 2010 on the New Zealand legislation website.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM326390.

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Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
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44A: Conviction of offence under section 44 excluded in certain cases, or

"When you might not be guilty of breaking a rule under section 44"

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44C: Criminal liability for false or misleading statement or information, or

"Telling lies can be a crime"

Part 3Investigation and enforcement
Offences: False or misleading statement or information

44BFalse or misleading statement or information

  1. A person must not make a statement or disseminate information, in relation to any transaction or event regulated by the takeovers code or incidental or preliminary to a transaction or event that is or is likely to be regulated by the takeovers code, if—

  2. a material aspect of the statement or information is false or the statement or information is materially misleading; and
    1. the statement or information is likely to—
      1. induce a person to trade, or hold, the financial products of a code company; or
        1. have the effect of increasing, reducing, maintaining, or stabilising the price for trading in those financial products; or
          1. induce a person to vote for, or to vote against, a transaction that is or is likely to be regulated by the takeovers code, or to abstain from voting in respect of that transaction.

          2. In this section, trade means to acquire or dispose of financial products.

          Notes
          • Section 44B: inserted, on , by section 24 of the Takeovers Amendment Act 2006 (2006 No 48).
          • Section 44B(1)(b)(i): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
          • Section 44B(1)(b)(i): amended, on , by section 18 of the Takeovers Amendment Act 2010 (2010 No 88).
          • Section 44B(1)(b)(ii): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
          • Section 44B(2): amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).