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Deposit Takers Act 2023

Crisis management and resolution - No creditor or shareholder worse off - How valuer must determine compensation

375: Resolution value

You could also call this:

"Working out a company's value at an earlier time"

Illustration for Deposit Takers Act 2023

When you are working out the resolution value, you need to think about what it was worth at an earlier time. You have to discount the resolution value back to when the affected entity first entered into resolution. This rule does not change what is said in section 371.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS550687.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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"What something is worth if it has to be sold quickly to pay debts"

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376: Discount rate, or

"How to work out compensation using a discount rate"

Part 7Crisis management and resolution
No creditor or shareholder worse off: How valuer must determine compensation

375Resolution value

  1. The valuer must, when assessing the resolution value, discount the resolution value back to the time that the affected entity entered into resolution.

  2. This section does not limit section 371.