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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Requirements

HM 14: Minimum number of investors

You could also call this:

“Number of investors required for different types of PIEs”

If you’re not a listed PIE, you need to have at least 20 people in each group of investors.

If you’re a company listed on a New Zealand stock exchange and you’re a listed PIE, you can only have one group of investors. Everyone in this group must own shares that are traded on the stock exchange. This rule also applies to unlisted PIEs that meet the requirements of section HM 18.

There are some exceptions to these rules. You can find them in Sections HM 21(1) and HM 22. These sections can change the rule about needing 20 or more people in each investor group.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888733.

Topics:
Money and consumer rights > Taxes
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Part H Taxation of certain entities
Portfolio investment entities: Requirements

HM 14Minimum number of investors

  1. If the entity is not a listed PIE, each investor class must include 20 or more persons.

  2. For listed PIEs, if the entity is a company listed on a recognised exchange in New Zealand, it must have only 1 investor class of which each investor is a member. Each investor interest must be a share traded on the exchange. This subsection applies equally to an unlisted PIE that meets the requirements of section HM 18.

  3. Sections HM 21(1) and HM 22 override subsection (1).

Compare
  • s HL 6(1A), (1), (2), (4)
Notes
  • Section HM 14: inserted, on (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section HM 14(1): amended, on , by section 92 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
  • Section HM 14(2) heading: substituted, on , by section 61(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section HM 14(2): amended, on , by section 61(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section HM 14(3): amended, on (applying for the 2010–11 and later income years), by section 46(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).