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New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Issue of shares

42: Issue of other shares

You could also call this:

“Company boards can issue shares as they see fit, following legal and company rules”

The board of a company can give out shares whenever they want. They can give them to anyone they choose, and they can give out as many as they think is right. But they have to follow the rules in this law and the company’s own rules when they do this.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320156.

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41: Issue of shares on registration and amalgamation, or

“ Shares must be given out when a company is formed or joins with another ”

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43: Notice of share issue, or

“Telling the Registrar when new shares are issued”

Part 6 Shares and debentures
Issue of shares

42Issue of other shares

  1. Subject to this Act and the constitution of the company, the board of a company may issue shares at any time, to any person, and in any number it thinks fit.