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Commerce Act 1986

Enforcement, remedies, and appeals - Business acquisitions

85B: Court may order divestiture of assets or shares in respect of contravention of undertaking

You could also call this:

"Court can make you sell assets if you break a business promise"

Illustration for Commerce Act 1986

If you break a promise you made under section 69A of the Commerce Act, the court can order you to get rid of some assets or shares. The court can do this if the Commerce Commission asks them to, and if you have already gone ahead with a business acquisition. The court will tell you how to get rid of the assets or shares, and you will have to do it in the way you promised. You have 12 months to sort this out from the date you were supposed to keep your promise. The Commerce Commission can ask the court to do this at any time within those 12 months.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1688004.

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85A: Pecuniary penalties for contravention of undertaking, or

"Paying a fine for breaking a promise made to the government"

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85C: Matters court must not take into account under sections 85A and 85B, or

"Things the court must ignore when making some decisions"

Part 6Enforcement, remedies, and appeals
Business acquisitions

85BCourt may order divestiture of assets or shares in respect of contravention of undertaking

  1. If the court, on the application of the Commission, is satisfied that any person has contravened an undertaking accepted under section 69A and the acquisition to which the undertaking relates has proceeded, the court may, by order, give directions for the disposal by that person of any assets or shares in accordance with the undertaking.

  2. An application under this section may be made at any time within 12 months from the date on which the relevant obligation under the undertaking was required to be met.

Notes
  • Section 85B: 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 14(1) of the Commerce Amendment Act 2008 (2008 No 70).