Section HA 29 — Income Tax Act 2007: Elections by majority shareholders

HA 29 Elections by majority shareholders When this section applies (1) This section applies when 1 or more shareholders (the majority ) in a company have, at the time of making an election, effective interests in the company of 50% or more, and the effective interest of 1 or more other shareholders (the minority ) is less than 50%. Majority assuming minority’s liability (2) The majority may sign a notice of election advising the Commissioner that the company is to become a qualifying company. The notice has effect only if the majority agree to an extension of their personal liability under section HA 8(3) . Minority treated as making election (3) The minority is treated as having made an election under section HA 5 in relation to their shareholding in the company at the time the election is made. Election additional (4) An election under this section may be made in addition to any other election a shareholder may make or have made under section HA 5 . Defined in this Act: Commissioner , company , effective interest , notice , qualifying company , shareholder , Compare: 2004 No 35 s HG 4(3)