The Takeovers Panel has released an updated version of its Guidance Note on Costs Recovery.

The Panel says the guidance note has been revised extensively following the High Court’s decision in Abano Healthcare Group Limited v Healthcare Partners Holdings Ltd [2018] NZHC 817.

The Takeovers Act 1993 provides that target companies and their directors are entitled to be reimbursed for certain costs.

The guidance note summarises the relevant provisions of the Takeovers Act and relevant case law. It also sets out the Panel’s expected approach in the event that any costs disputes come before it.

The Panel has also prepared a comparative outline which shows the main changes to the previous version of the guidance note.