Section 67 — Companies Act 1993: Enforceability of contract to repurchase shares

67 Enforceability of contract to repurchase shares (1) A contract with a company providing for the acquisition by the company of its shares is specifically enforceable against the company except to the extent that the company would, by performance, be unable to satisfy the solvency test in accordance with section 52 of this Act. (2) The company has the burden of proving that performance of the contract would result in the company being unable to satisfy the solvency test in accordance with section 52 of this Act. (3) Until the company has fully performed a contract referred to in subsection (1) of this section, the other party to the contract retains the status of a claimant entitled to be paid as soon as the company is lawfully able to do so or, prior to the removal of the company from the New Zealand register, to be ranked subordinate to the rights of creditors but in priority to the other shareholders.