Plain language law

New Zealand law explained for everyone

Companies Act 1993

Shares and debentures

38: No nominal value

You could also call this:

“Shares have no fixed value printed on them”

You need to know that a share in a company can’t have something called a ‘nominal’ or ‘par’ value. This means that shares don’t have a set price or value printed on them.

Even though shares can’t have a nominal or par value, a company can still issue something called a ‘redeemable share’. This is a special kind of share that the company can buy back from you later.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320149.

Topics:
Business > Industry rules
Business > Fair trading
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37: Types of shares, or

“Companies can issue different types of shares with varying rights and features”

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39: Transferability of shares, or

“Shares can be transferred unless the company's rules say otherwise”

Part 6 Shares and debentures

38No nominal value

  1. A share must not have a nominal or par value.

  2. Nothing in subsection (1) prevents the issue by a company of a redeemable share.