Plain language law

New Zealand law explained for everyone

Building Societies Act 1965

Preliminary

2: Interpretation

You could also call this:

“Explaining important words used in the Building Societies Act”

This section explains the meaning of important terms used in the Building Societies Act 1965. Here’s what you need to know:

  • An ‘alteration’ to the rules of a society includes adding, removing, or changing rules.

  • The ‘annual return’ is a report the society must make each year.

  • The ‘board of directors’ runs the society. If there’s a management committee instead, that’s considered the board.

  • A ‘bonus ballot’ is a draw for prizes among certain types of shares.

  • A ‘building society’ is an organisation set up under this law or an earlier one from 1908.

  • ‘Court’ usually means the District Court, but sometimes the High Court.

  • A ‘director’ is someone who helps run the society, no matter what their exact title is.

  • ‘Financial year’ is the society’s accounting period, usually a year.

  • ‘Land’ includes different types of property rights, not just the ground itself.

  • A ‘member’ is someone who owns a share in the society or has taken over a member’s rights or duties.

  • An ‘officer’ includes directors, managers, and secretaries of the society.

  • If an officer breaks the rules knowingly, they can be held responsible and might face fines or prison time.

The section also defines many other terms used in the Act. These definitions help everyone understand exactly what the law means when it uses these words.

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 It might be out of date or be missing some parts.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=DLM367774.

Topics:
Housing and property > Buying and selling homes Business > Industry rules Money and consumer rights > Banking and loans
Previous

1: Short Title and commencement, or

"This law's name and when it started"

Next

2A: Transitional, savings, and related provisions, or

"Rules for smoothly changing from the old law to the new law"

Part 1 Preliminary

2Interpretation

  1. In this Act, unless the context otherwise requires,—

    alteration, in relation to the rules of a society, includes any addition to the rules, and also includes the rescission of all or any of the rules, with or without the substitution of 1 or more new rules for any rules rescinded

      annual return means the annual return required to be made by a society pursuant to section 103

        applicable auditing and assurance standard has the same meaning as in section 5 of the Financial Reporting Act 2013

          board of directors, in relation to a society managed by a committee of management, means that committee

            bonus ballot means a ballot, held by or on behalf of a society, of eligible bonus balloting shares for the purpose of ascertaining which of the holders of those shares are entitled to receive any prizes arising in respect of those shares

              bonus balloting shares means shares issued pursuant to section 31A

                building society, or society, means a building society incorporated under this Act or under the Building Societies Act 1908

                  court means the District Court in any case where the District Court has jurisdiction under the District Court Act 2016 in relation to this Act or to building societies, and in any other case means the High Court or a Judge of the High Court

                    debt security has the same meaning as in section 8 of the Financial Markets Conduct Act 2013

                      director includes a member of a committee of management of a society, and any other person occupying the position of director, by whatever name called

                        disposition, in relation to any land, means any disposition of that land inter vivos, and includes the grant of a lease or underlease; and acquisition has a corresponding meaning

                          financial statements has the same meaning as in section 6 of the Financial Reporting Act 2013

                            financial year, in relation to a society, means a year ending on a balance date of the society (within the meaning of section 41 of the Financial Reporting Act 2013), and if, as a result of the date of the incorporation of the society or a change of the balance date of the society, the period ending on that date is longer or shorter than a year, that longer or shorter period is a financial year

                              FMA means the Financial Markets Authority established under Part 2 of the Financial Markets Authority Act 2011

                                generally accepted accounting practice has the same meaning as in section 8 of the Financial Reporting Act 2013

                                  instrument includes—

                                  1. any instrument (other than this Act) of any form or kind that creates, evidences, modifies, or extinguishes rights, interests, or liabilities or would do so if it or a copy thereof were lodged, filed, or registered under any enactment; and
                                    1. any judgment, order, or process of a court

                                      land includes—

                                      1. all estates or interests, whether freehold or chattel, in real property; and
                                        1. a licensee's interest under—
                                          1. a licence to occupy (within the meaning of section 122 of the Land Transfer Act 2017); or
                                            1. a deferred payment licence (within the meaning of section 2 of the Land Act 1948)

                                            liabilities means liabilities, debts, charges, duties, and obligations of every description (whether present or future, actual or contingent, and whether payable or to be observed or performed in New Zealand or elsewhere)

                                              member, in relation to a society, includes—

                                              1. any person who for the time being holds a share (whether advanced or not) in the society:
                                                1. any person who has succeeded to any of the rights or liabilities of a member of the society

                                                  Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

                                                    officer, in relation to a society, includes a director, manager, or secretary

                                                      permanent society has the meaning assigned to it by section 10

                                                        prescribed means prescribed by regulations made under this Act

                                                          property means property of every kind whether tangible or intangible, real or personal, corporeal or incorporeal and, without limiting the generality of the foregoing, includes—

                                                          1. choses in action and money:
                                                            1. goodwill:
                                                              1. rights, interests and claims of every kind in or to property, whether arising from, accruing under, created or evidenced by or the subject of, an instrument or otherwise and whether liquidated or unliquidated, actual, contingent, or prospective

                                                                purchase price, in respect of any leasehold estate in land, means any sum payable as the consideration, or as part of the consideration, for the grant or assignment of the lease

                                                                  registered valuer means a valuer for the time being registered under the Valuers Act 1948

                                                                    Registrar means the Registrar of Building Societies under this Act

                                                                      rights means all rights, powers, privileges, and immunities, whether actual, contingent, or prospective

                                                                        security means a mortgage, submortgage or charge (whether legal or equitable), debenture, bill of exchange, promissory note, guarantee, indemnity, defeasance, hypothecation, lien, pledge, or other security for the payment of money or for the discharge of any other obligation or liability and in any case whether upon demand or otherwise, whether present or future and whether actual or contingent, and includes an agreement or undertaking to give or execute whether upon demand or otherwise any of the foregoing

                                                                          share includes stock

                                                                            special resolution has the meaning assigned to it by section 81

                                                                              terminating society has the meaning assigned to it by section 10; and, where a permanent society in existence at the commencement of this Act had, on 1 August 1965, shareholders in terminating groups, includes that part of the society's activities which relates to terminating groups.

                                                                              1. For the purposes of Part 7A, conversion date means the date shown on the certificate of incorporation of a society as a company under the Companies Act 1993 issued pursuant to section 113D.

                                                                              2. For the purposes of any enactment in this Act which provides that an officer of a society who is in default shall be liable on conviction to imprisonment or to a fine, the expression officer who is in default means any officer of the society who knowingly and wilfully authorises or permits the default, refusal, or contravention mentioned in the enactment.

                                                                              3. Repealed

                                                                              4. Any reference in this Act to contravention of any provision of this Act, or of any regulations or directions thereunder, shall include a reference to failure to comply with that provision.

                                                                              Notes
                                                                              • Section 2: replaced, on , by section 2 of the Building Societies Amendment Act 1987 (1987 No 175).
                                                                              • Section 2(1) applicable auditing and assurance standard: inserted, on , by section 5(3) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                                                                              • Section 2(1) appropriate District Registrar of Companies: repealed, on , by section 7 of the Building Societies Amendment Act 2007 (2007 No 43).
                                                                              • Section 2(1) court: replaced, on , by section 261 of the District Court Act 2016 (2016 No 49).
                                                                              • Section 2(1) debt security: replaced, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                              • Section 2(1) financial statements: inserted, on , by section 5(3) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                                                                              • Section 2(1) financial year: replaced, on , by section 5(1) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                                                                              • Section 2(1) FMA: inserted, on , by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
                                                                              • Section 2(1) generally accepted accounting practice: inserted, on , by section 5(3) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                                                                              • Section 2(1) land: replaced, on , by section 364(1) of the Property Law Act 2007 (2007 No 91).
                                                                              • Section 2(1) land paragraph (b)(i): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).
                                                                              • Section 2(1) licensed auditor: repealed, on , by section 5(2) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                                                                              • Section 2(1) Minister: replaced, on , by section 10(3) of the Department of Justice (Restructuring) Act 1995 (1995 No 39).
                                                                              • Section 2(1) participatory security: repealed, on , by section 150 of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
                                                                              • Section 2(1) registered audit firm: repealed, on , by section 5(2) of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).
                                                                              • Section 2(1) security: amended, on , by section 191(1) of the Personal Property Securities Act 1999 (1999 No 126).
                                                                              • Section 2(2): amended, on , by section 14 of the Companies Amendment Act 2013 (2013 No 111).
                                                                              • Section 2(3): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
                                                                              • Section 2(4): repealed, on , by section 2(1) of the Building Societies Amendment Act 1989 (1989 No 111).