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New Zealand law explained for everyone

Companies Act 1993

Shares and debentures - Issue of shares

50: Consent to issue of shares

You could also call this:

“Shares that create new debts need your written consent before they're issued”

When a company wants to give you a share that makes you owe more money to the company or creates a new debt for you, they need your permission first. You or someone you’ve chosen in writing must agree in writing to accept the share before the company can give it to you. If they don’t get your written agreement, then giving you the share doesn’t count - it’s as if it never happened. This rule is there to protect you from suddenly owing money to a company without knowing about it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320167.

Topics:
Business > Industry rules
Business > Fair trading
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“Rules for issuing share options and convertible products”

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“Shares become official when the owner's name is added to the share register”

Part 6 Shares and debentures
Issue of shares

50Consent to issue of shares

  1. The issue by a company of a share that—

  2. increases a liability of a person to the company; or
    1. imposes a new liability on a person to the company—
        1. is void if that person or an agent of that person authorised in writing does not consent in writing to becoming the holder of the share before it is issued.