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Building Societies Act 1965

Management and administration - Directors and other officers

87: Officers not to accept commissions

You could also call this:

“Workers at building societies can't take extra money for helping with loans or insurance”

If you work for a building society as a director, manager, secretary, or any other officer, you can’t accept extra money or rewards from anyone else for helping with loans or insurance policies that your society handles. This includes gifts, bonuses, or any other benefits.

If you do accept this kind of extra payment, you’re breaking the law. You could go to jail for up to 6 months, pay a fine of up to $100, or both. If you’re found guilty and don’t give the money back to your society when the court tells you to, you could face the same punishment again.

It’s also against the law for someone to give you this kind of extra payment. If they do, they could also go to jail for up to 6 months, pay a fine of up to $100, or both.

Remember, these rules are there to make sure that people working for building societies are fair and honest in their work.

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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=DLM372028.

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Part 7 Management and administration
Directors and other officers

87Officers not to accept commissions

  1. No director, manager, secretary, or other officer of a society shall, in addition to that person's remuneration as an officer of the society, accept from any other person any commission for or in connection with—

  2. any loan made by the society; or
    1. any policy of insurance effected through the society or issued by a person nominated or selected by the society.

      1. If any director or other officer contravenes any of the foregoing provisions of this section—

      2. that director or other officer commits an offence and shall be liable on conviction to imprisonment for a term not exceeding 6 months or to a fine not exceeding $100, or to both; and
        1. if, having been convicted of an offence against subsection (1), that director or other officer fails to pay to the society the amount or value of the commission referred to in that subsection, as and when directed to do so by the convicting court, that director or other officer commits a further offence and shall be liable on conviction to imprisonment for a term not exceeding 6 months or to a fine not exceeding $100, or to both.

          1. If any person pays to any director or other officer any commission to which this section applies, that person commits an offence and shall be liable on conviction to imprisonment for a term not exceeding 6 months or to a fine not exceeding $100, or to both.

          2. In this section, commission includes any gift, bonus, or benefit.

          Notes
          • Section 87: replaced, on , by section 19 of the Building Societies Amendment Act 1987 (1987 No 175).
          • Section 87(2)(a): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
          • Section 87(2)(b): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
          • Section 87(3): amended, on , by section 413 of the Criminal Procedure Act 2011 (2011 No 81).