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Commerce Act 1986

Enforcement, remedies, and appeals - Business acquisitions

83: Pecuniary penalties relating to business acquisitions

You could also call this:

"Fines for breaking business rules: you might have to pay money if you do something wrong on purpose."

Illustration for Commerce Act 1986

If you break certain business acquisition rules, like those in section 47 or 47B, you might have to pay a fine to the government. The court can order you to pay this fine if you have done something wrong on purpose. You can also be fined if you helped someone else break the rules.

When the court decides how much you should pay, they look at what you did and how it affected others. They think about what happened and whether you have broken the rules before. The court wants to know if you did something wrong to get ahead in business.

The amount of money you have to pay depends on who you are and what you did. If you are an individual, you might have to pay up to $500,000. If you are a company, you might have to pay up to $10 million, or more if you made a lot of money from breaking the rules.

You can't be fined twice for the same thing under section 80 and this section. The court can start a case against you within three years of when you broke the rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM89473.

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Part 6Enforcement, remedies, and appeals
Business acquisitions

83Pecuniary penalties relating to business acquisitions

  1. The court may, on the application of the Commission, order a person to pay a pecuniary penalty to the Crown if the court is satisfied that the person—

  2. has contravened section 47 or 47B; or
    1. has attempted to contravene either of those sections; or
      1. has aided, abetted, counselled, or procured any other person to contravene either of those sections; or
        1. has induced, or attempted to induce, any other person, whether by threats or promises or otherwise, to contravene either of those sections; or
          1. has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by any other person of either of those sections; or
            1. has conspired with any other person to contravene either of those sections.

              1. Repealed

              2. In determining an appropriate penalty under this section, the court must have regard to all relevant matters, including—

              3. the nature and extent of the act or omission:
                1. the nature and extent of any loss or damage suffered by any person as a result of the act or omission:
                  1. the circumstances in which the act or omission took place:
                    1. whether or not the person has previously been found by the court in proceedings under this Part to have engaged in any similar conduct.

                      1. The amount of any pecuniary penalty must not, in respect of each act or omission, exceed,—

                      2. in the case of an individual, $500,000; or
                        1. in any other case, the greater of the following:
                          1. $10 million:
                            1. either,—
                              1. if it can be readily ascertained and if the court is satisfied that the contravention occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the contravention; or
                                1. if the commercial gain cannot readily be ascertained, 10% of the turnover of the person and all its interconnected bodies corporate (if any) in each accounting period in which the contravention occurred.

                              2. Repealed

                              3. Repealed

                              4. Proceedings under this section may be commenced within 3 years after the matter giving rise to the contravention arose.

                              5. A person is not liable to a pecuniary penalty under both section 80 and this section in respect of the same conduct.

                              Notes
                              • Section 83: substituted, on , by section 29 of the Commerce Amendment Act 1990 (1990 No 41).
                              • Section 83 heading: amended, on , by section 25(1) of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
                              • Section 83(1): replaced, on , by section 25(2) of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
                              • Section 83(1A): repealed, on , by section 38(1) of the Commerce Amendment Act 2022 (2022 No 11).
                              • Section 83(2): amended, on , by section 38(2) of the Commerce Amendment Act 2022 (2022 No 11).
                              • Section 83(3): inserted, on , by section 38(3) of the Commerce Amendment Act 2022 (2022 No 11).
                              • Section 83(3): repealed, on , by section 12(2)(d) of the Commerce Amendment Act 2008 (2008 No 70).
                              • Section 83(4): repealed, on , by section 12(2)(d) of the Commerce Amendment Act 2008 (2008 No 70).