Document background
A Board Resolution For Buy Back Of Shares is a crucial corporate governance document used in New Zealand when a company intends to repurchase its own shares from shareholders. This document is required under the Companies Act 1993 and must be prepared whenever a company plans to reduce its share capital through a buyback program. The resolution demonstrates the board's compliance with statutory requirements, particularly the solvency test, and includes essential details such as the number of shares to be purchased, price per share, and timing of the buyback. It's commonly used during capital restructuring, excess cash utilization, or when returning value to shareholders. The document must align with New Zealand's corporate law framework and may require additional considerations if the company is listed or subject to the Takeovers Code.
