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3 June 2003
The Takeovers Panel has granted an exemption to shareholders of Richmond Limited who would breach the fundamental rule of the Code when orders made in a recent Court decision come into force. The Panel considered submissions received from the public before granting the exemption on 29 May 2003.
In Richmond Limited v PPCS Limited the High Court made orders forfeiting and suspending certain voting rights in Richmond held by PPCS Limited.
Other Richmond shareholders would become the holders or controllers of an increased percentage of voting rights in the company when the Court orders take effect. This could put some of these shareholders in breach of the Code, depending on their shareholding at the time the Court orders come into force.
The exemption allows Richmond shareholders who hold voting rights immediately before the Court orders take effect, to retain, and be able to exercise, any increased voting rights they acquire when the Court orders take effect. Normal Code rules would apply to any subsequent transactions.
The exemption notice and a memorandum to Richmond and its shareholders about the exemption are available on the Panel's website (www.takeovers.govt.nz).