Plain language law

New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Issue of shares

46: Consideration for issue of 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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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320161.

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45: Pre-emptive rights, or

“Existing shareholders get first chance to buy new shares”

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46A: Consideration for issue of shares on registration, or

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

Part 6 Shares and debentures
Issue of shares

46Consideration for issue of shares

  1. 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
  • Section 46: amended, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).