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Companies Act 1993

Accounting records and financial reporting - Financial reporting

198: Interpretation

You could also call this:

“Explaining key terms used in financial record-keeping and reporting rules”

In this part of the Companies Act 1993, you’ll learn about some important words and what they mean. These definitions help you understand the rules about keeping financial records and reporting.

A ‘group’ means a company or overseas company and the companies it owns.

A ‘large company’ is one that meets certain size requirements set out in section 45 of the Financial Reporting Act 2013.

A ‘large overseas company’ is a company from another country that does business in New Zealand and meets the same size requirements as a large company.

A ‘public entity’ is defined in section 5 of the Public Audit Act 2001.

A ‘qualified auditor’ is someone who can check company accounts, as defined in section 35 of the Financial Reporting Act 2013.

A ‘subsidiary’ is a company owned by another company, as explained in sections 5 to 8 of this Act. It can also mean other types of businesses that are treated as subsidiaries in financial reporting rules.

A ‘voting share’ is a share in a company that lets you vote at shareholder meetings. However, some voting shares only let you vote in special situations, like when the company hasn’t paid dividends, when there are changes to the share’s rights, when the company is closing down, or for small matters that don’t really affect who controls the 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=DLM320886.

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Part 11 Accounting records and financial reporting
Financial reporting

198Interpretation

  1. In this subpart,—

    group means a group comprising a company or an overseas company and its subsidiaries

      large company means a company that is large under section 45 of the Financial Reporting Act 2013

        large overseas company means a body corporate incorporated outside New Zealand that—

        1. carries on business in New Zealand within the meaning of section 332; and
          1. is large under section 45 of the Financial Reporting Act 2013

            public entity has the same meaning as in section 5 of the Public Audit Act 2001

              qualified auditor has the same meaning as in section 35 of the Financial Reporting Act 2013

                subsidiary—

                1. means a subsidiary within the meaning of sections 5 to 8; and
                  1. includes, except in section 207D, any entity that is classified as a subsidiary in any applicable financial reporting standard

                    voting share, in relation to a company, means a share in the company that confers a currently exercisable right to cast a vote at meetings of shareholders of the company, not being a right to vote that is exercisable only in 1 or more of the following circumstances:

                    1. during a period in which a payment or distribution (or part of a payment or distribution) in respect of the share is in arrears or some other default exists:
                      1. on a proposal that affects rights attached to the share:
                        1. during the liquidation of the company:
                          1. in respect of a special, immaterial, or remote matter that is inconsequential to control of the company.

                          Notes
                          • Section 198: replaced, on , by section 30 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).