Plain language law

New Zealand law explained for everyone

Building Societies Act 1965

Constitution of building societies - Commencement of business

28: Business not to be commenced before incorporation

You could also call this:

“Building societies can't start working until they get a special permission paper”

You can’t start a building society or pretend to be one without getting a special certificate first. This certificate is called a certificate of incorporation. If you try to do business without this certificate, you’re breaking the law.

If you or your society breaks this rule, you’ll have to pay a fine. The fine is up to $10 for each day you’ve been doing business without the proper certificate.

Only a group called the FMA can start legal action against you if you break this rule.

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 It might be out of date or be missing some parts.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=DLM371631.

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

27F: Schedule 7 may be amended, or

"The rule about changing a list of building society rules doesn't exist anymore"

Next

29: Minimum subscription by founding members, or

"Founding members must buy shares before the society can start"

Part 2 Constitution of building societies
Commencement of business

28Business not to be commenced before incorporation

  1. No society, and no persons representing themselves to be a society, shall commence business without first obtaining a certificate of incorporation under this Act.

  2. Every society or person who acts in contravention of this section commits an offence and is liable on conviction to a fine not exceeding $10 for every day during which business has been carried on without a certificate of incorporation having been obtained.

  3. Proceedings for an offence against this section must be commenced by the FMA.

Compare
  • 1908 No 18 s 49
  • Building Societies Act 1962 s 12(1) (UK)
Notes
  • Section 28(2): replaced, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
  • Section 28(3): inserted, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).