Plain language law

New Zealand law explained for everyone

Building Societies Act 1965

Constitution of building societies - Membership

24: Members who are not shareholders

You could also call this:

"You can join a building society without buying a share"

A building society can make rules that let you become a member without owning a share in the society. This means you don't have to buy a share to join.

When the society makes rules about giving loans or making investments to its members, they don't have to say that you own a share just because you got a loan or investment from them. The rules can be written in a way that doesn't automatically make you a shareholder when you borrow money or receive an investment from the society.

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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=DLM371612.

Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
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23: Change of name, or

"How to change the name of your building society"

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25: Members under age of 20, or

"Young people can join building societies but have limited rights"

Part 2Constitution of building societies
Membership

24Members who are not shareholders

  1. The rules of a society may allow a person to become a member without holding a share in the society.

  2. Such of the rules as relate to the making of loans or other investments to members need not be expressed in terms that treat a member to whom a loan or other investment is made as being, by reason of the making of the loan or other investment, the holder of a share in the society.

Compare
  • Building Societies Act 1962 s 8 (UK)
Notes
  • Section 24(2): amended, on , by section 38 of the Building Societies Amendment Act 1987 (1987 No 175).