Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
42: Issue of other shares
or “Company boards can issue shares as they see fit, following legal and company rules”
You could also call this:

“Telling the Registrar when new shares are issued”

When a company issues new shares, the board must tell the Registrar about it. You need to do this within 10 working days of issuing the shares. This applies to shares issued under [section 41(b)], [section 42], or [section 107(2)]. You have to use a special form to notify the Registrar.

If the board doesn’t tell the Registrar about the new shares in time, each director of the company is breaking the law. They could be found guilty of an offence. The punishment for this is set out in [section 374(2)].

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: 44: Shareholder approval for issue of shares

or “Company boards can issue new shares if shareholders approve changes to company rules”
Next

Part 6 Shares and debentures
Issue of shares

43Notice of share issue

  1. The board of a company must deliver to the Registrar for registration, within 10 working days of the issue of shares under section 41(b) or section 42 or section 107(2), a notice in the prescribed form of the issue of the shares by the company.

  2. If the board of a company fails to comply with subsection (1), every director of the company commits an offence and is liable on conviction to the penalty set out in section 374(2).

Notes
  • Section 43(1): amended, on , by section 3 of the Companies Act 1993 Amendment Act 1997 (1997 No 27).