Plain language law

New Zealand law explained for everyone

45: Pre-emptive rights
or “Existing shareholders get first chance to buy new shares”

You could also call this:

“How you can pay for shares when a company issues them”

When a company issues shares, it can accept different forms of payment. You can pay for shares with cash, but that’s not the only option. The company can also accept promissory notes, which are written promises to pay later. They might let you pay by agreeing to do work for the company in the future. You could even pay with real property (like land or buildings) or personal property (like furniture or equipment). The company can also accept its own financial products as payment for new shares. This means you have many choices when you want to buy shares in a company.

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Next up: 46A: Consideration for issue of shares on registration

or “How you might need to pay for shares when a company is first set up”

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Companies Act 1993
Shares and debentures
Issue of shares
46: Consideration for issue of shares

Part 6 Shares and debentures
Issue of shares

46Consideration for issue of shares

The consideration for which a share is issued may take any form and may be cash, promissory notes, contracts for future services, real or personal property, or other financial products of the company.

Notes