Building Societies Act 1965

Constitution of building societies - Disposal of part of business undertaking

34A: Power to dispose of part of business undertaking

You could also call this:

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

You can sell or get rid of part of your building society's business. To do this, you need to get approval from either a general meeting of the society or the board of directors. They can decide who to sell to and what the terms of the sale will be.

However, there's a limit to what you can sell. You can't sell any part of the business if it would mean joining with another society or transferring any of your society's responsibilities to someone else.

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This page was last updated on 15 April 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM371652.

Topics:

Money and consumer rights > Banking and loansHousing and property > Buying and selling homes

34: Supplementary provisions as to union and transfer of engagements, or

"Extra rules for societies joining together or passing on their duties"

35: Advances on security of mortgage of land for residential purposes, or

"Helping people buy homes with mortgages (no longer in use)"

Part 2Constitution of building societies
Disposal of part of business undertaking

34APower to dispose of part of business undertaking

A society may, with the approval of a resolution of a general meeting of the society or of the board of directors of the society, sell or otherwise dispose of any part of the business undertaking of the society to such person or persons and upon such terms and conditions as the society in general meeting or the board of directors thinks fit.
Nothing in subsection (1) authorises a society to sell or dispose of any part of the business undertaking of the society if that sale or disposition would result in the society uniting with any other society or transferring any of the society's engagements.

Notes

Section 34A: inserted, on 1 September 1987, by section 11 of the Building Societies Amendment Act 1987 (1987 No 175).