New Zealand Law Society - Takeovers Costs Reimbursement guidance issued

Takeovers Costs Reimbursement guidance issued

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The Takeovers Panel has issued a Guidance Note on the Process for Costs Reimbursements under the Takeovers Act 1993.

The Panel says that an amendment to the Act came into force on 31 March 2017, governing takeovers costs disputes.

Until the amendment came into force, takeovers costs disputes were governed by rule 49 of the Takeovers Code. Reimbursement disputes under rule 49 were adjudicated by the District or High Court, although they were often settled out of court.

The replacement of rule 49 with new sections 48 to 53 of the Takeovers Act transfers the role of primary adjudicator of reimbursement disputes.

The guidance note outlines considerations, and states that the Panel strongly encourages parties to deal with the question of costs through negotiation.