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Building Societies Act 1965

Management and administration - Accounting records and financial reporting

97A: Offences relating to laying financial statements before annual general meeting, half-yearly financial statements, directors' report, and distribution of financial statements

You could also call this:

“Breaking rules about money reports and meetings can get building society directors in trouble”

If you’re a director of a building society, you need to know about some important rules. These rules are about financial statements, reports, and meetings. If you don’t follow these rules, you could get in trouble and have to pay a fine of up to $10,000.

The rules say you need to show financial statements at the yearly big meeting, make half-year financial statements, write a directors’ report, and share the financial statements. These are all explained in different parts of the law.

But don’t worry too much! If you’re accused of breaking these rules, you can defend yourself. You can show that your building society did everything it could to follow the rules. Or you can prove that you personally did everything you could. You can also explain if there was a good reason why you couldn’t follow the rules.

Remember, it’s important to try your best to follow these rules to avoid any problems.

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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=DLM372063.

Topics:
Money and consumer rights > Banking and loans Business > Industry rules
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97: Depositors and members entitled to be supplied with copy of financial statements, or

"Members can get free copies of the society's money reports"

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97B: Election to receive summary financial statements, or

"Choosing shorter financial reports is no longer allowed"

Part 7 Management and administration
Accounting records and financial reporting

97AOffences relating to laying financial statements before annual general meeting, half-yearly financial statements, directors' report, and distribution of financial statements

  1. If any of sections 91(2), 92, 95, 96, and 97 are not complied with, every director of the society commits an offence and is liable on conviction to a fine not exceeding $10,000.

  2. It is a defence to a director of a society charged with an offence under this section in respect of a requirement referred to in section 91(2), 92, 95, 96, or 97 if the director proves that—

  3. the society took all reasonable and proper steps to ensure that the requirement would be complied with; or
    1. the director took all reasonable steps to ensure that the requirement would be complied with; or
      1. in the circumstances, the director could not reasonably have been expected to take steps to ensure that the requirement would be complied with.

        Notes
        • Section 97A: replaced, on , by section 7 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).