2AB Extended meaning of code company for purpose of completing code-regulated transactions

(1)

This section applies if a company ceases to be a code company within the meaning of section 2A(1) as the result of, or during, a transaction or an event regulated under the takeovers code.

(2)

The company continues to be treated as a code company for the purpose of completing the transaction or event, until the transaction or event is complete and all requirements of the code in relation to the transaction or event have been complied with.

(3)

For the purposes of subsection (2), if, as a result of the transaction or event, a person becomes a dominant owner in the company, completing the transaction or event includes applying the compulsory acquisition rules in Part 7 of the code (and the transaction or event is not complete until those rules are applied).

(4)

Subsection (2) does not prevent the company from again becoming a code company under section 2A(1).

(5)

In this section,—

(a)

dominant owner, in relation to a company, means a person who becomes the holder or controller, or 2 or more persons acting jointly or in concert who become the holders or controllers, of 90% or more of the voting rights in the company (whether by reason of acceptances of an offer or otherwise):

(b)

words or expressions used in the definition of dominant owner have the same meanings as they have in the takeovers code:

(c)

a reference to rules in Part 7 of the code includes any other rules that, with or without modification, replace or correspond to those rules.

Section 2AB: inserted, on 13 January 2020, by section 118 of the Regulatory Systems (Economic Development) Amendment Act 2019 (2019 No 62).