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Commerce Act 1986

Enforcement, remedies, and appeals - Restrictive trade practices

80A: Restriction on indemnities relating to contraventions of section 30

You could also call this:

"Companies can't pay back directors or employees for certain law-breaking penalties or costs."

Illustration for Commerce Act 1986

If you are a director, employee, or agent of a company, the company cannot pay you back for certain penalties or costs. This includes penalties imposed by the court under section 80 for breaking section 30 of the law. It also includes costs you incur when defending yourself in court for these penalties.

The company also cannot pay you back for penalties or costs if you are convicted under section 82B of the law. If the company does try to pay you back, this payment is not valid. When we talk about a company paying you back, this is called an indemnity, which means relieving or excusing you from liability.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM89447.

Topics:
Business > Industry rules
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80B: Pecuniary penalties for contravention of section 80A, or

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Part 6Enforcement, remedies, and appeals
Restrictive trade practices

80ARestriction on indemnities relating to contraventions of section 30

  1. A body corporate must not indemnify any director, employee, or agent, or former director, employee, or agent, of the body corporate or of any of its interconnected bodies corporate (person A) in respect of—

  2. any pecuniary penalty imposed on person A by the court under section 80 in respect of a contravention of section 30; or
    1. any costs incurred by person A in defending any civil proceedings in which the pecuniary penalty referred to in paragraph (a) is imposed; or
      1. any penalty imposed on person A by the court following the conviction of person A under section 82B; or
        1. any costs incurred by person A in defending any criminal proceedings in which person A is convicted under section 82B.

          1. An indemnity given in contravention of subsection (1) is void.

          2. In this section, indemnify includes relieve or excuse from liability, whether before or after the liability arises; and indemnity has a corresponding meaning.

          Notes
          • Section 80A: replaced, on , by section 23 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
          • Section 80A(1)(b): amended, on , by section 10(1) of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).
          • Section 80A(1)(c): inserted, on , by section 10(2) of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).
          • Section 80A(1)(d): inserted, on , by section 10(2) of the Commerce (Criminalisation of Cartels) Amendment Act 2019 (2019 No 9).