Plain language law

New Zealand law explained for everyone

Building Societies Act 1965

Constitution of building societies - Union or transfer of engagements

34: Supplementary provisions as to union and transfer of engagements

You could also call this:

“Extra rules for societies joining together or passing on their duties”

If a building society wants to join with other societies or give its responsibilities to another society, it needs to follow some rules. You need to send a statement to all the members who can vote on this decision. This statement should explain:

  1. The money situation of your society and the other societies involved
  2. How the directors of your society might benefit from this change
  3. Any money or rewards the directors or other officials might get
  4. Any payments that might be made to members of the societies involved

You must send this information along with the notice about the meeting where people will vote on the change.

If the Registrar (a person who keeps official records) gets a notice about societies joining or transferring responsibilities, and everything has been done correctly, they will register the notice. This registration means that all the money, property, and assets of your society will officially belong to the new joined society or the society taking over the responsibilities.

If any land is involved in this transfer, the Registrar-General of Land will make the necessary changes in the official records when asked and when the right fee is paid.

This change won’t affect any money that your society owes to other people.

If you don’t follow these rules about sending information to members, you haven’t broken the law completely, but your society and its officers might get in trouble for not doing things properly.

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 It might be out of date or be missing some parts.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=DLM371649.

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

33: Transfer of engagements, or

"How a society can pass on its duties to another society"

Next

34A: Power to dispose of part of business undertaking, or

"Building societies can sell some of their business, but not all of it"

Part 2 Constitution of building societies
Union or transfer of engagements

34Supplementary provisions as to union and transfer of engagements

  1. A society (in this section referred to as the relevant society) desiring to unite with 1 or more other societies, or to transfer all or part of its engagements to another society, shall send to each member referred to in subsection (2) a statement setting out—

  2. the financial position of the relevant society and that of the other society or societies concerned:
    1. the interest of the directors of the relevant society in the union or transfer:
      1. the compensation or other consideration proposed to be paid to the directors or other officers of the relevant society, and of the other society or societies concerned:
        1. the payments (if any) to be made to the members of the relevant society, and of the other society or societies concerned, in consideration of the union or transfer of engagements.

          1. A statement under subsection (1) shall be sent to every member qualified to vote on the special resolution to approve the union, or to effect the transfer of engagements, as the case may be, together with the notice of meeting required to be sent to each such member.

          2. If the Registrar receives a notice of a union or transfer under section 32 or 33 and is satisfied that those sections and this section have been complied with, the Registrar must register the notice.

          3. The registration by the Registrar of notice of the union or transfer shall operate, by virtue of this subsection and without further assurance, as an effectual transfer and assignment, as at the date of the registration, to the united society or, as the case may be, to the society to which the engagements are transferred, of the funds, property, and assets of the relevant society, or, as the case may be, of such part of those funds, property, and assets as are provided for by the resolution to approve the union or to effect the transfer, as the case may be.

          4. Where by virtue of subsection (4) any land or interest in land becomes vested in the united society or, as the case may require, the society to which the engagements are transferred, the Registrar-General of Land, on the request of the said society and on payment of the appropriate fee, and on being satisfied, by statutory declaration or otherwise, of the title of the said society, shall make such entries in the register and generally do such things as may be necessary to give effect to that subsection.

          5. The union or transfer of engagements shall not affect the rights of any creditor of the relevant society.

          6. A failure to comply with any of the provisions of subsections (1) and (2) shall not invalidate the union or transfer of engagements; but if the relevant society fails to comply with any of those provisions the society, and every officer of the society who is in default, shall be guilty of an offence against this Act.

          Notes
          • Section 34: replaced, on , by section 11 of the Building Societies Amendment Act 1987 (1987 No 175).
          • Section 34(3): replaced, on , by section 7 of the Building Societies Amendment Act 2007 (2007 No 43).
          • Section 34(5): amended, on , by section 250 of the Land Transfer Act 2017 (2017 No 30).