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Takeovers Act 1993

Investigation and enforcement - Other court orders - Management bans

44G: Terms of management banning orders

You could also call this:

"What is a management banning order and how it stops people from managing companies"

Illustration for Takeovers Act 1993

A court can make a management banning order that stops you from being a director or taking part in managing a company in New Zealand. This order can be permanent or for a certain period of time. The court can only make a long order, more than 10 years, in very serious cases. You are not allowed to be involved in managing a company without the court's permission. This rule does not apply to companies based overseas that do not do business in New Zealand. The court decides how long the order will last. The court makes these decisions to ensure you follow the rules. You must obey the order or you might face more trouble. The order is made to protect the companies and people involved.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM326704.

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44F: When court may make management banning orders, or

"When the court can stop someone from managing a company"

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44H: Offence of contravening management banning order, or

"Breaking a management banning order is a serious crime"

Part 3Investigation and enforcement
Other court orders: Management bans

44GTerms of management banning orders

  1. A management banning order may, permanently or for a period specified in the order, prohibit or restrict the person (without the leave of the court) from being a director or promoter of, or in any way (whether directly or indirectly) being concerned or taking part in the management of, an incorporated or unincorporated body (other than an overseas company, or an incorporated or unincorporated body, that does not carry on business in New Zealand).

  2. The court may make a management banning order permanent or for a period longer than 10 years only in the most serious of cases for which an order may be made.

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