Document background
A Board Resolution For Acquisition of Shares is a crucial corporate governance document used in New Zealand when a company intends to purchase shares in another entity. This document must comply with the Companies Act 1993 and potentially other legislation such as the Financial Markets Conduct Act 2013 and the Overseas Investment Act 2005, depending on the transaction's nature. It's required whenever a company's board needs to formally approve a share acquisition, whether it's a minor stake or a complete takeover. The resolution documents the board's decision-making process, confirms compliance with directors' duties, and provides authorization for the transaction's execution. It typically includes meeting details, background information about the proposed acquisition, consideration of the transaction's merits, formal resolutions, and any necessary regulatory compliance statements. This document serves as official evidence of proper corporate governance and board approval for stakeholders, regulators, and future reference.
