Plain language law

New Zealand law explained for everyone

Crown Entities Act 2004

Establishment and governance of Crown entities - Crown entity companies - Formation and shareholding of Crown entity companies

80: Restrictions relating to shares in Crown entity companies

You could also call this:

"Rules for Ministers owning shares in Crown companies"

Illustration for Crown Entities Act 2004

You cannot sell shares in a Crown entity company if you are a Minister. You also cannot let someone else have shares in a Crown entity company if they are not a Minister who owns shares. There are some exceptions to this rule. You can dispose of shares if the Crown's interest in the company is not reduced, like in a merger. You can also dispose of shares if an Act of Parliament says you can transfer ownership of shares in a Crown entity company. Some types of shares are exempt from this rule, like redeemable preference shares that cannot be converted into other types of shares and do not give the owner voting rights. You can find similar information in the State-Owned Enterprises Act 1986. This law applies to Crown entity companies and their shares.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330318.

Topics:
Government and voting > Government departmentsMoney and consumer rights > Consumer protectionBusiness > Industry rules
Previous

79: Formation and acquisition of shares in Crown entity companies, or

"The government can buy shares in its own companies, but only if two or more Ministers agree, including the Minister of Finance."

Next

81: Crown entity company must have constitution stating it is Crown entity, or

"Crown entity companies must have a constitution that says they are a Crown entity."

Part 2Establishment and governance of Crown entities
Crown entity companies: Formation and shareholding of Crown entity companies

80Restrictions relating to shares in Crown entity companies

  1. No Minister may—

  2. sell or otherwise dispose of any shares in a Crown entity company held in the Minister's name; or
    1. permit shares in a Crown entity company to be allotted or issued to any person other than a shareholding Minister.

      1. However, despite subsection (1)(a), a Minister may dispose of shares—

      2. as part of a reconstruction or merger in which the Crown's interest in the shares of the company is not diluted; or
        1. if an Act authorises the transfer of ownership of shares of a Crown entity company.

          1. Subsection (1) does not apply to redeemable preference shares that—

          2. are not convertible into shares of any other class; and
            1. do not confer any rights to vote at any general meeting of the company.

              Compare