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Commerce Act 1986

Authorisations and clearances - Business acquisitions

69AB: Authorisation or clearance void if undertaking contravened

You could also call this:

"Breaking a promise made for a business deal cancels the permission you were given."

Illustration for Commerce Act 1986

If you break a promise you made under section 69A, the permission you got for a business acquisition is no longer valid from the date it was given. You are not allowed to use the permission anymore because you did not keep your promise. The court can still make decisions about what happens next, using sections 85A to 85C. When you break a promise, the court can make orders even if the permission is no longer valid. This means the court has the power to decide what should happen because you did not keep your promise.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1686697.

Topics:
Business > Fair tradingBusiness > Industry rules
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69A: Commission may accept undertakings, or

"The Commission can accept a promise from you to sell some assets when you buy a business"

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69AC: Variation of undertaking, or

"Changing a promise you made about a business takeover"

Part 5Authorisations and clearances
Business acquisitions

69ABAuthorisation or clearance void if undertaking contravened

  1. If a person contravenes an undertaking accepted under section 69A, the clearance given or the authorisation granted in relation to the acquisition to which the undertaking relates is void and of no effect from the date it was given or granted.

  2. Subsection (1) does not prevent the court from making an order under sections 85A to 85C in relation to the undertaking.

Notes
  • Section 69AB: inserted, on (applying only to undertakings under section 69A that are accepted in relation to clearances given or authorisations granted on notices under section 66 or 67 that are registered after that date), by section 7(1) of the Commerce Amendment Act 2008 (2008 No 70).