Guidance About the Code for ‘Mum And Dad’ Investors

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Takeovers Panel Publishes Guidance About the Code for ‘Mum And Dad’ Investors

Today the Takeovers Panel published a “Basic Guide for Shareholders about the Takeovers Code” along with a series of “Fact-Sheets” for shareholders.

These easy-to-read publications are designed to provide to retail investors who are already shareholders or who are thinking about becoming shareholders:

• basic information about how the Takeovers Code protects shareholders’ rights; and

• an explanation of the processes of the Takeovers Code and how these processes support shareholder participation in transactions that cause changes of control (of ownership levels) of their company.

The Basic Guide and the Fact-Sheets are freely available for downloading on the new Shareholders’ page on the website of the Takeovers Panel (www.takeovers.govt.nz).

David Jones, the Chairman of the Takeovers Panel, said today “The Panel is pleased that it has been able to publish these documents at a time when more and more New Zealanders are investing directly in the capital markets. The Basic Guide and the Fact-Sheets are written for ordinary investors who want a better understanding about their rights as shareholders.”

NZX CEO Tim Bennett commented: "The timing of the launch of the Panel's materials is excellent given the backdrop of the increased activity in New Zealand's equity markets. This is a good opportunity for investors to upskill themselves about what the implications are for them and their rights within a takeover process." 2

The New Zealand Shareholders Association also supports the Panel’s efforts to ensure investors are better informed. “We will be encouraging our members to take advantage of this opportunity to increase their understanding of their rights and protections as shareholders” said Chairman John Hawkins.

Chief Executive of the Takeovers Panel, Margaret Bearsley, often receives enquiries from shareholders and lawyers about whether the Takeovers Code applies to small companies. “With these publications we are looking to provide information about the Takeovers Code to retail shareholders of companies, both listed and unlisted. We are also particularly focusing on the boards and shareholders of small companies, for example, co-operative companies and property owning companies etc who may not be aware of the application of the Code to their companies”.

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