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New Zealand law explained for everyone

Companies Act 1993

Shareholders and their rights and obligations - Powers of shareholders

104: Exercise of powers reserved to shareholders

You could also call this:

“How shareholders can use their special company powers”

When you own part of a company, you have certain powers given to you by the law. These powers can only be used in specific ways. You can use them at a meeting with other shareholders, or by agreeing to something without having a meeting.

If the law gives you powers as a shareholder, you can only use them in two ways. You can go to a meeting of shareholders, which is set up following the rules in section 120 or section 121. Or, you can agree to something without a meeting, which is done according to section 122.

Sometimes, the company’s own rules (called the constitution) give you extra powers as a shareholder. If this is the case, you can use these powers in the same two ways, unless the constitution says otherwise. You can either use them at a meeting set up following section 120 or section 121, or you can agree to something without a meeting as described in section 122.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM320481.

Topics:
Business > Industry rules
Business > Fair trading
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Part 7 Shareholders and their rights and obligations
Powers of shareholders

104Exercise of powers reserved to shareholders

  1. Powers reserved to the shareholders of a company by this Act may be exercised only—

  2. at a meeting of shareholders pursuant to section 120 or section 121; or
    1. by a resolution in lieu of a meeting pursuant to section 122.

      1. Powers reserved to the shareholders of a company by the constitution of the company may, subject to the constitution, be exercised—

      2. at a meeting of shareholders pursuant to section 120 or section 121; or
        1. by a resolution in lieu of a meeting pursuant to section 122.