Takeovers Panel publishes free guide for directors on compliance with Takeovers Code

by NZ Lawyer19 Feb 2014
The Takeovers Panel has published a Basic Guide for Directors about the Takeovers Code.

David Jones, chairman of the Takeovers Panel, said the guide is designed to help directors with their oversight of transactions, which may have an effect on the control of their company.

“These transactions include not only takeover offers but also the more common company transactions, such as rights issues, share buybacks, and acquisitions by or allotments to major shareholders in the company.”

The Basic Guide for Directors explains how to identify whether the company is actually covered by the Code and, if it is, whether a transaction will be covered by the Code.
The launch of the guide follows-on from the launch late last year of the Basic Guide for Shareholders and a series of fact-sheets for shareholders.

The CEO of the Ministry of Business, Innovation and Employment, David Smol, welcomed the Panel’s initiative in producing this free booklet.

“Helping company directors to better understand their roles and obligations in the capital markets makes good sense. This aligns with the Government’s Business Growth Agenda which includes creating high-performing capital markets,” said Smol.

The free guide can be downloaded on the Takeovers Panel website.