Statement by John King, Chairman of the Takeovers Panel - 16 March 2001

Public Comment Sought On Class Exemptions From The Takeovers Code

16 March 2001

The Takeovers Panel is seeking public comment on draft class exemptions from the fundamental rule of the Takeovers Code.

The Code comes into force on 1 July this year and the Takeovers Panel expects to have the class exemptions in place by that date.

The class exemptions aim to provide a standard form of exemption to apply to common classes of transactions.

"This will reduce significantly the need for specific exemptions," Panel Chairman John King said. "However, if the terms and conditions of the class exemptions do not fit the circumstances of a particular case then a specific exemption may still be sought."

The key areas included in the draft class exemptions are:

  • buy-backs by companies of voting securities;
  • allotments by companies of voting securities;
  • transactions involving lenders and receivers; proxies; sharebrokers; underwriters; nominee companies and bare trustees; and executors, trustees and administrators of deceased estates.

"The draft class exemptions are subject to terms and conditions designed to ensure that the underlying purpose and intent of the Code is fulfilled," John King said.

The draft class exemptions are on the Panel's web site www.takeovers.govt.nz. Hard copies are available on request from the Takeovers Panel, phone (04) 471 4618 or email takeovers.panel@takeovers.govt.nz

The closing date for submissions is Monday, 9 April 2001. Submissions should be sent to The Secretary, Takeovers Panel, P O Box 1171, Wellington.

Contact:
Catherine Chapman
Direct dial 04 471 7659