New Zealand Legislation: Acts

37AL Other proceedings for relief in respect of section 37

• (1) This section applies—

  • (a) to all proceedings commenced after this section comes into force that relate to an allotment of a security made in contravention of section 37; and

  • (b) to all proceedings that have not been finally disposed of by the court of first instance before this section comes into force that relate to an allotment of a security made in contravention of section 37.

  (2) The court must not, in respect of an allotment of a security made in contravention of section 37, make any order or declaration, including an order or declaration in respect of moneys payable, relief, validation, restitution, compensation, variation of a contract, or relief of a contract in whole or part or for any particular purpose, other than any of the following orders:

  • (a) any order in accordance with any of the provisions of sections 37AA to 37AK, this section, and sections 37B to 37G:

  • (b) any order or direction in relation to a matter of procedure:

  • (c) any order as to costs:

  • (d) any order to require the repayment of any subscriptions or interest under section 37(5) or (6):

  • (e) any order in relation to proceedings under section 59:

  • (f) any order in relation to proceedings under section 60(2).

  (3) This section does not limit—

  • (a) the right of a person to discontinue any proceedings; or

  • (b) the right of a person to commence proceedings in accordance with any of the provisions of sections 37AA to 37AK, this section, and sections 37B to 37G.

  (4) Subsection (5) applies if—

  • (a) proceedings have been commenced to require the repayment of subscriptions or interest under section 37(5) or (6) in relation to the allotment of a security; and

  • (b) an application has been made for a relief order in relation to the security under 1 or more of the following provisions:

    • (i) section 37AC:

    • (ii) section 37AH:

    • (iii) section 37AI.

  (5) The court must, on the application of the issuer, order that the proceedings to require the repayment of subscriptions or interest under section 37(5) or (6) be stayed until after the determination of the application, or applications, for a relief order unless the application, or applications, for a relief order—

  • (a) is, or are, frivolous or vexatious; or

  • (b) is, or are, an abuse of the process of the court.

  (6) Nothing in this section applies to an appeal against a final judgment given or made before this section comes into force.

  Section 37AL: inserted, on 15 April 2004, by section 12 of the Securities Amendment Act 2004 (2004 No 31).