New Zealand Legislation: Bills

12B Treasury stock acquisitions

• (1) Section CD 25(4), other than the heading, is replaced by the following:

  • “(4) If subsection (2) applies, then, with effect from the cancellation or the first anniversary, depending on which first causes subsection (2) to apply, the available subscribed capital of the class of the share is reduced by the lesser of—

    • “(a) the amount paid to the shareholder on the acquisition; and

    • “(b) the available subscribed capital per share calculated under the ordering rule and, in the case of the first anniversary, calculated as if the share and any other shares to which this subsection applies on that date were cancelled on that date.”

  (2) Subsection (1) applies for the 2008–09 and later income years.